A binomial precision method for compound interest

This document presents a simple method to calculate compound interest using binomial expansion. Unlike the standard formula, this approach lets you choose how accurate you want the answer to be by controlling the number of terms used. It also gives a clean, easy rule for deciding when to stop — so you don’t over calculate or guess.

Authors

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-09-12
DOI
https://doi.org/10.5281/zenodo.22714374
Primary Topic
Advanced Mathematical Identities
Type
preprint
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preprint

A binomial precision method for compound interest

Farhan Faras
Zenodo (CERN European Organization for Nuclear Research)
Advanced Mathematical Identities
preprint

A binomial precision method for compound interest

Farhan Faras
preprint en

Abstract

This document presents a simple method to calculate compound interest using binomial expansion. Unlike the standard formula, this approach lets you choose how accurate you want the answer to be by controlling the number of terms used. It also gives a clean, easy rule for deciding when to stop — so you don’t over calculate or guess.

Zenodo (CERN European Organization for Nuclear Research)
Advanced Mathematical Identities
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