2. Compound interest formula: f = p (1+i) n. Where f represents the final value, p represents the principal, I represents the interest rate or discount rate, and n represents the number of interest-bearing periods.
The above is the calculation formula of simple interest and compound interest.
Specific introduction of simple interest and compound interest
Simple interest means that regardless of the loan term, interest is only calculated according to the principal, and the interest generated by the previous principal is not included in the next principal. According to the interest-bearing rules stipulated by the People's Bank of China, in China, interest is calculated once every quarter, and other savings deposits, such as time deposits, time deposits and withdrawals, lump-sum deposits and withdrawals, are calculated at simple interest.
Compound interest is also commonly known as compound interest. When the sum of the last principal and interest of the previous period is used as the principal of the next period, the amount of the principal of each period is different when calculating. Compound interest calculation can be divided into intermittent compound interest and continuous compound interest. The calculation method of regular compound interest is intermittent compound interest, and the method of immediate compound interest is continuous compound interest.
How to operate compound interest investment
1. Buying universal insurance products can make a profit every day, and the loan interest is calculated on a monthly basis, and the interest will also be credited to the investor's account at the beginning of the month;
2. Buy money funds: money funds are generally stable investment and wealth management products with low-to-medium income and low risk, and the income will be included in the capital purchase market share, thus completing compound interest investment;
3. Regular investment, financial management and reinvestment: firstly, buy investment and financial management products with fixed term and benchmark interest rate from the bank, and then invest the loan interest and funds into new investment and financial management after maturity, and then make compound interest investment.
Does long-term shareholding count as compound interest?
Long-term holding of stocks is compound interest. For example, if an investor buys 100 shares and the principal is 10 RMB, if the stock price rises by 10%, the principal will become 1 100 RMB after the close of the day, and the fluctuation of the next day will be1/kloc-0 RMB.
In addition, if investors hold stocks for a long time, they may also enjoy dividends from listed companies. If a listed company sends shares, it is a compound interest investment. If listed companies distribute cash dividends, investors buy stocks again with dividend cash, which is also considered as compound interest investment. Compound interest is compound interest, that is, add the previous interest and principal together as the principal, and then calculate the interest. This paper mainly writes about the knowledge points of simple interest and compound interest calculation formulas, and the content is for reference only.