Compound Interest Calculator

 What is Compound Interest?

Compound interest is such a technique of calculating interest, in which, in order to get interest, the old interest is added to the old principal amount and the new principal amount is calculated, and interest is calculated on it like ordinary interest,

and in the next time period, the interest drawn and the principal amount are added back to form a new principal amount, and now the interest is debited back to that new principal amount,

And this cycle continues,

In compound interest, the principal amount varies from time to time, and the interest at that time is added to the old principal amount,

And back on this new amount (principal + interest), the interest is drawn at the predetermined rate,

For example, 10% compound interest on Rs 1 lakh means,

In the first month, Rs. 1 lakh which is the principal amount, 10% interest will be deducted on it, which will be Rs. 10,000.

After this, in the second month, the new principal amount will be –

Principal Amount + Interest = New Principal Amount.

1,00,000 +10,000) = 1,10,000 and now in the second month 2% interest will be deducted on the new principal amount – which will be Rs.11,000,

And now the principal amount for the third month will be 1,10,000 + 11,000 = 1,21,000

And now in the third month 10% interest will be withdrawn on this new principal amount,

And this way it will go on,

What are the benefits and uses of compound interest?

Compound interest advantage –

1. The biggest advantage of compound interest is that, in this, the amount of interest is always changing and increasing, and due to this, the payer of interest gets more profit,

2. In compound interest, interest is not only available on the principal, but the interest is also available on the interest earned,

Use of compound interest-

1. A lot of money can be made by making better use of compound interest, and can also be lost, if you are going to take compound interest then you get the benefit of money, and if you are going to pay compound interest then you will get money. suffer loss,

2. Compound interest is used by the credit card company,

3. And many different banks take interest from the compound interest on the loan given by them,

How to uses of Compound interest calculator?

Compound Interest Formula

Calculating compound interest uses a globally standardized method to determine the total compound interest earned. The formula is-

 A = P (1 + r/n) ^ nt   

The following are the variables in the compound interest formula.

P = Principal Amount

R/r = Rate of interest

N/n = Number of times interest compounds in a year

T/t = Number of years

A = Compound interest

How can Compound Interest Calculator help you?

The nature of compound interest makes it extremely attractive to businesses. When you use the Compound Interest Calculator online, you can take advantage of the following benefits.

It helps you to determine a precise figure and percentage of returns in a given time frame.

A reliable calculator helps you identify how much investment you may need over a time frame. Thereafter the required funds can be conveniently arranged.