Compound Interest Calculator
Compound Interest Calcultor can quickly calculate the future value of your investment. Enter the value of principal amount, rate of interest, period of time, compounding frequency and find out how much your saving can grow in future. Investing money where the returns are compounded, is one of the smarter move to increase your wealth and finance over time.
CI= Compound Interest
P= Principal Amount
r= Rate of Interest
t= Time of Compounding
n= Frequency of Compounding
Principal often called initial amount of money, is the money that is borrowed, invested, or deposited. Interest Rate is always applied on the principal amount for calculating any form of interest rates.
Example:
if you take a loan of 200$ from a bank then 200$ is the principal amount.
Time is the amount of duration the money is borrowed or invested. More the time more the interest amount will be. Generally we represent time in years while calculating the simple interest.
Rate of Interest is the Percentage on which the Interest Amount is calculated.Genrally we represent rate of interest in Percentage Per Year. Rate is the main factor in determining how much interest we are going to earn or to pay to the bank.
annually →n=1
semi-annually→ n=2
quarterly→ n=4
monthly→ n=12
daily→ n=365
We want the time for our amount to be double of the Principal ie,
Amount=2*P
so,
⇒
⇒
Taking Log on both sides we get,
⇒
Using power law of log we get,
⇒
Now, solving for value of t we get,
⇒
