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Calculation of Interest,
Principal, and PaymentsSymbols and Abbreviations
General: With discrete compounding, i = interest rate per period, percent; n = number of
interest periods. With continuous compounding, y = nominal annual interest rate, percent;
interest period = 1 year.
Simple and compound interest—single payment: P = value of payment at beginning of
first interest period, also termed present worth of payment; S = value of payment at end of
wth interest period, also termed future value of payment.