👉 Interest math is a fundamental concept in finance that calculates the cost or return of borrowing or investing money over time, based on a principal amount (P), an annual interest rate (r), and the time period (t). It's expressed using the formula A = P(1 + r/n)^(nt), where A is the total amount after interest, n is the number of times interest is compounded per year, and t is the time in years. This formula helps individuals and businesses understand how much they'll owe or earn on their investments, enabling better financial planning and decision-making. Simple interest is calculated only on the principal, while compound interest adds interest to both the principal and any accrued interest, leading to exponential growth over time.
