Compound interest rate

The compound interest rate is that which is calculated on a capital to which the interest previously generated is added, so that these in turn produce new interest.

The following formula is used to calculate compound interest:

Vf= C (1+i)n

In which:

Vf: Sum of the principal and interest to be paid.

C: Capital or amount of the loan.

i: Interest rate.

n: Number of periods in which compound interest is capitalized.