Math Calculators, Lessons and Formulas

It is time to solve your math problem

mathportal.org

# Compound interest calculator

Compound Interest is calculated on the initial payment and also on the interest of previous periods.

Example: Suppose you give \$100 to a bank which pays you 10% compound interest at the end of every year. After one year you will have \$100 + 10% = \$110, and after two years you will have \$110 + 10% = \$121. Click here to view some problem which can be solved by using this calculator. Problem How much money would you need to deposit today at 12% annual interest compounded quarterly to have$1000 in the account after 2 years?

Result

The principal is 789.41. Explanation To find amount we use formula:  $$A = P \left( 1 + \frac{r}{n} \right)^{\Large{n \cdot t}}$$ A = total amount P = principal or amount of money deposited, r = annual interest rate n = number of times compounded per year t = time in years In this example we have $$A = \1000 ~,~ r = 12 \% ~ , ~ n = 4 ~ \text{and} ~ t = 2 ~ \text{years}$$ After plugging the given information we have \begin{aligned} 1000 &= P \left( 1 + \frac{ 0.12 }{ 4 } \right)^{\Large{ 4 \cdot 2 }} \\ 1000 &= P \cdot { 1.03 } ^ { 8 } \\ 1000 &= P \cdot 1.26677 \\ P &= \frac{ 1000 }{ 1.26677} \\ P &= 789.41 \end{aligned} ## Report an Error ! Script name : compound-interest-calculator Imputed values: 1 , 1 , 12 , 2 , 1 , 3 , 1000 Comment (optional) Email (optional) ## Share Result Share this result with others by using the link below. You can click here to verify link or you can just copy and paste link wherever you need it. Compound Interest Calculator Show me the solution without an explanation Compound Interest Calculator Show me the solution without an explanation ## Compound Interest Problems This is a list of the example problems which can be solved by using this calculator. ### Problems with unknown interest and amount Example 1: What will a deposit of \4,500 at 7% compounded yearly interest be worth if left in the bank for 9 years?

 Set up the form View the solution

Example 2: What will a deposit of $3,500 at 10% compounded monthly be worth if left in the bank for 8 years?  Set up the form View the solution ### Problems with unknown principal Example 3: How much money would you need to deposit today at 8% annual interest compounded monthly to have \$1200 in the account after 12 years?

 Set up the form View the solution

Example 4: Find the present value of \$1,000 to be received at the end of 2 years at a 12% nominal annual interest rate compounded quarterly.  Set up the form View the solution ### Problems with unknown interest rate Example 5: What annual interest rate is implied if you lend someone$1,700 and are repaid $1,910 in two years?  Set up the form View the solution Example 6: Suppose that a savings account is compounded monthly with a principal of \$1350. After 8 months, the amount increased to \$1424. What was the per annum interest rate?  Set up the form View the solution ### Example with unknown time period Example 7: How long does it take for \$4,300 to grow into \\$2,720 at 9% compounded quarterly?

 Set up the form View the solution

Quick Calculator Search