Question 950143
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The formula to calculate interest and update balance is {{{A= P(1+(r/n))^nt}}}.
A = amount
P = initial amount
r = interest rate
n = times per year
t = amount of years

Is {{{A-P}}} the same as  {{{P(r/n)^nt}}}?

I need just the amount of interest calculated.
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<pre>
In his post, @lwsshar3 answers "Yes" to your question.


This answer "Yes" is FATALLY incorrect.


The correct answer is "No".


It would be INCORRECT to use the formula  A - P = {{{P(r/n)^nt}}}.


To find the interest, you need calculate the future value first using the standard formula

    A = {{{P*(1+r/n)^nt}}}


and then (after that) calculate the interest as A - P.
</pre>

Again, the answer in the post by @lwsshar3 is incorrect.
Ignore it and be aware.