Compound interest calculator
Compound interest is interest that is calculated on the principal amount together with accumulated interest.
Compound interest calculator is used to calculate compound interest for various time intervals (yearly, half hearly, Quarterly, monthly or daily)
What is compound interest?
Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.
Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods.
Compound interest differs from simple interest in that simple interest is calculated solely as a percentage of the principal sum.
Formula for calculating compound interest:
P = C(1+ r/n)^nt
P = future value
C = initial deposit
r = interest rate (expressed as a fraction: eg. 0.06 for 6%)
n = # of times per year interest is compounded
t = number of years invested