Compound Interest Calculator & Simple Interest
Use Mathcrave AI Tutor below, get clear guides on how to solve problem-related on simple and compound interest
About Compound Interest Calculator
The compound interest calculator shows the amount of interest earned on a fixed amount for a specific period of time. It helps you calculate the earnings of an investment for a given period of time and is calculated by multiplying the number of years by the interest rate and dividing it by the principal.
How The Compound Interest Works
- Enter the value for principal, time and period into the 3 boxes respectively
- Select if you want to compute annually, half-annually, quarterly or monthly
- Hit the equal orange button to generate the worksheet.
Inside the Calculator’s Brain
- Simple interest is computed using SI = PRT/100%, where p is the principal (the original amount of loan borrowed from a bank), R is the rate (amount charged on a money borrowed), and I is the interest (is the cost you pay for borrowing the principal)
- The amount in simple interest is calculated from the addition of the principal to the simple interest = principal + simple interest
- The compound interest is computed using the following parameters
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed
- Amount on compound interest is calculated by adding the principal to the compound interest.