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Compound Interest Calculator

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✖Principal Investment Amount is most commonly used to refer to the amount borrowed or the amount still owed on a loan, separate from interest.ⓘ Principal Investment Amount [A]			+10% -10%
✖Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis.ⓘ Annual Interest Rate [i]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n]			+10% -10%
✖The Number of Years Money is Invested is the total number of years for which the money is invested.ⓘ Number of Years Money is Invested [T]			+10% -10%

✖Future Value of Investment is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.ⓘ Compound Interest [FV]

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Compound Interest Solution

STEP 0: Pre-Calculation Summary

Formula Used

Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested)
FV = A*(1+(i/n))^(n*T)
This formula uses 5 Variables

Variables Used

Future Value of Investment - Future Value of Investment is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.
Principal Investment Amount - Principal Investment Amount is most commonly used to refer to the amount borrowed or the amount still owed on a loan, separate from interest.
Annual Interest Rate - Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
Number of Years Money is Invested - The Number of Years Money is Invested is the total number of years for which the money is invested.

STEP 1: Convert Input(s) to Base Unit

Principal Investment Amount: 100000 --> No Conversion Required
Annual Interest Rate: 8 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required
Number of Years Money is Invested: 3 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

FV = A*(1+(i/n))^(n*T) --> 100000*(1+(8/2))^(2*3)

Evaluating ... ...

FV = 1562500000

STEP 3: Convert Result to Output's Unit

1562500000 --> No Conversion Required

FINAL ANSWER

1562500000 ≈ 1.6E+9 <-- Future Value of Investment

(Calculation completed in 00.004 seconds)

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< Important Formulas of Investment Calculators

Compound Interest

LaTeX Go Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested)

Certificate of Deposit

LaTeX Go Certificate of Deposit = Initial Deposit Amount*(1+(Annual Nominal Interest Rate/Compounding Periods))^(Compounding Periods*Number of Years)

Capital Gains Yield

LaTeX Go Capital Gains Yield = (Current Stock Price-Initial Stock Price)/Initial Stock Price

Risk Premium

LaTeX Go Risk Premium = Return on Investment (ROI)-Risk Free Return

Compound Interest Formula

LaTeX Go

Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested)
FV = A*(1+(i/n))^(n*T)

How to Calculate Compound Interest?

Compound Interest calculator uses Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested) to calculate the Future Value of Investment, Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Future Value of Investment is denoted by FV symbol.

How to calculate Compound Interest using this online calculator? To use this online calculator for Compound Interest, enter Principal Investment Amount (A), Annual Interest Rate (i), Number of Periods (n) & Number of Years Money is Invested (T) and hit the calculate button. Here is how the Compound Interest calculation can be explained with given input values -> 1.6E+9 = 100000*(1+(8/2))^(2*3).

FAQ

What is Compound Interest?

Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods and is represented as FV = A*(1+(i/n))^(n*T) or Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested). Principal Investment Amount is most commonly used to refer to the amount borrowed or the amount still owed on a loan, separate from interest, Annual Interest Rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets on annual basis, The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate & The Number of Years Money is Invested is the total number of years for which the money is invested.

How to calculate Compound Interest?

Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods is calculated using Future Value of Investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years Money is Invested). To calculate Compound Interest, you need Principal Investment Amount (A), Annual Interest Rate (i), Number of Periods (n) & Number of Years Money is Invested (T). With our tool, you need to enter the respective value for Principal Investment Amount, Annual Interest Rate, Number of Periods & Number of Years Money is Invested and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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