What is the formula for compound interest? Amount=Principal*(1+(r/100))^n But please simplify it taking compoundinterest as the subject For...

The formula A=P(1+r/100)^n gives the amount of money in an
account given an initial investment of P dollars, invested at an interest rate of r% for
a period of n years, compounded yearly.

Year 0 you invest P
dollars.

After 1 year you earn P*r/100 dollars in interest,
and now have P+P*r/100 or P(1+r/100) dollars. ** Factor out the common
P

After year 2 you earn interest on your total
account:

P(1+r/100)(1+r/100)=P(1+r/100)^2

**This
is [P(1+r/100)]+[P(1+r/100)(1+r/100)]. The first term is the amount of money in your
account at the end of the year before interest, and the second term is the amount of
interest earned that year. Factor out the common P(1+r/100) to get the
result.

After year
three:

P(1+r/100)(1+r/100)(1+r/100)=P(1+r/100)^3

etc...