Use the formula: A = P(1 + r/n)^(nt)
Identify P as the principal amount
Identify r as the annual interest rate in decimal form
Identify n as the number of times interest is compounded per year
Identify t as the number of years
Substitute the values into the formula
Calculate the total amount A
Find the compound interest by subtracting the principal from the total amount: CI = A – P