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).