Interest Rate Gain Over Time

To find out how much interest a certain amount of money will generate over a given amount of time, use the equation Pe^rt. In this equation, P is the original amount of money that is gaining interest. R is the interest rate for the money, and T is the amount of time the money will be gaining interest. E is just E.

You multiply the interest rate by the amount of time the money gains interest, and raise E to that power. You then multiply that by the original amount of money. Here’s an example:

You put $10 dollars in the bank at an annual interest rate of .08% for 3 years. You multiply the .08 by the 3 years. You would put the .24 as the power of the E and multiply that by the original $10 dollars. That would give you the interest gained by the $10 dollars over 3 years.