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Compound Interest Example Compound interest can be calculated using the equation A = P(1 + i)" , where P is the initial amount (principle investment), A is the future value of the investment, i is the interest rate per compounding period, and n is the number of compounding periods. Example 1: An investment of $2500 grows at a rate of 4.8% per year, compounded annually. How long will it take for the investment to be worth $8000