How do I calculate the compound interest?
Calculating compound interest can be a daunting task but with the help of Sourcetable it can be much simpler. The formula for calculating compound interest is
FV = PV(1+r)n, where FV is the future value, PV is the present value, r is the interest rate per period, and n is the number of periods. With Sourcetable, the formula is already built in so you don't have to manually calculate the compound interest. All you have to do is provide the variables and the output will be the future value of your investment.
Are there any risks associated with compound interest?
Yes. Compound interest can work against you if you are carrying debt. If you are unable to make payments on time, the interest will accumulate, resulting in a greater amount of debt over time.