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# Compound interest calculator

Compound interest is calculated on both the initial payment and the interest earned in previous periods.

problem

If you deposit $4500 into an account paying 7% annual interest compounded semi anualy. Find the amount and interest after 9 years? solution The amount is$8358.7 and the interest is 3858.7. explanation STEP 1: To find amount we use formula:  $$A = P \left( 1 + \frac{r}{n} \right)^{\Large{n \cdot t}}$$ A = total amount P = principal (amount of money deposited) r = annual interest rate n = number of times compounded per year t = time in years In this example we have $$P = \4500 ~,~ r = 7 \% ~ , ~ n = 2 ~ \text{and} ~ t = 9 ~ \text{years}$$ After plugging the given information we have \begin{aligned} A &= 4500 \left( 1 + \frac{ 0.07 }{ 2 } \right)^{\Large{ 2 \cdot 9 }} \\ A &= 4500 \cdot { 1.035 } ^ { 18 } \\ A &= 4500 \cdot 1.857489 \\ A &= 8358.7 \end{aligned} STEP 2: To find interest we use formula A = P + I $, since$ A = \$8358.7$ and $P = \$4500 we have: \begin{aligned} A &= P + I \\ 8358.7 &= 4500 + I \\ I &= 8358.7 - 4500 \\ I &= 3858.7 \end{aligned} ## Report an Error ! Script name : compound-interest-calculator Form values: 0 , 4500 , 7 , 9 , 1 , 2 , g , , , Comment (optional) Compound Interest Calculator Find the amount of money you receive after investing time. help ↓↓ examples ↓↓ Hide steps Compound Interest Calculator Here you can select a value you want to find. help ↓↓ examples ↓↓ Hide steps working... Examples: example 1:ex 1: What is the value of a4500 deposit at 7% compounded annual interest if it is held in a bank for 9 years?
example 2:ex 2:
What will a $3500 deposit at 10% compounded monthly be worth after 8 years in the bank? example 3:ex 3: How much money would you need to put today at 8% annual compounded monthly interest to have$1200 in the account after 12 years?
example 4:ex 4:
Determine the present value of $1000 at a 12% annual interest rate compounded quarterly at the end of two years. example 5:ex 5: What is the estimated yearly interest rate if you give someone$1700 and get repaid $1910 in two years? example 6:ex 6: Assume that a savings account with a principal of$1350 is compounded monthly. After 8 months, the total had risen to $1424. What was the interest rate per year? example 7:ex 7: How long does it take$4300 to grow to \$6720 when compounded quarterly at 9%?
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