Compound Interest Calculator
Compound Interest CalculatorThe Compound Interest calculator is used to compute the total deposit amount, interest, Final amount and the total yield. It is simple and effective in performing multiple conversions at once. The first procedure is to select the type of currency. It can either be in Dollars, Euro, Rand or any other. Enter the initial amount and the Deposit amount in their respective text fields. On the options provided next to the Deposit amount, select the period in which it is to be paid i.e. weekly, monthly, quarterly or yearly. Enter the annual interest rate in the subsequent text field and specify the period in which it is compounded.
The period of payment can either be days, weeks, months, quarters or years. It is important to specify the duration in the adjacent options provided as it enables the calculator to give accurate results. Confirm that all the details have been entered correctly before clicking the ‘Calculate’ button. It is effective in executing the calculations with a single click. If you want to perform new calculations, you will use the ‘Clear’ button to reset the calculator. It erases the previous calculations from the text field. Your results will be displayed below the two controls of the calculator.
For example;The initial amount is $1200 and the Deposit amount per month is $2400. Given that the annual interest per month is 5.5% in a period of 10 years, find the total deposit amount, interest and total yield.
Solution;You will first select the currency in US dollars. Enter the initial amount and deposit amount appropriately in their respective text fields. Confirm that the Annual interest rate and the period is concurrent with the options provided. Click the ‘Calculate’ button to perform the calculation.
Your results will be displayed as;
Total Deposit amount = 286,800.00
Interest amount = 95,695.49
Final amount = 382,495.49
Total yield =33.37%
The Compound Interest Calculator uses a formula in performing the conversions.
An = A0 x (1 + r/m)m.n, which means that the amount after n years is calculated by multiplying the initial amount by; one plus the annual interest rate divided by number of compounded periods. It is then raised to the power of m multiplied by n.