Compound Interest calculator
Calculate Compound interest with this calculator online.
Compound interest calculation
The formula that you can apply to find Compound Interest can be used as the amount after n years An is apparently equal to the initial amount that is A0 times one in addition to the annual interest rate r which is divided by the number of compounding periods in a year m which is raised to the power m times n:
Compound interest formula
Compound interest can now be calculated with examples.
Compound interest calculation formula
Future value calculation
The future amount that is to be calculated after n years An is totally equal to the initial amount A0 multiplied one plus the annual interest with rate r and divided by the number of the compounding periods in an year m which is raised to the power of m times n:
An is the future value of the amount after n years.
A0 is the present amount that is present.
r is the annual interest rate on which the amount is given.
m is the number of compounding periods per year.
n is the total number of years for which the amount is given.
If we have to find the future value of an amount after 7 years with the present value of $6,000 on an annual interest of 3%.
A0 = $6,000
r = 3% = 3/100 = 0.03
m = 1
n = 7
A10 = $6,000·(1+0.03/1)(1·7) = $4,933.42