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 the 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 and 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) and Number of Years the Money is Invested (T) and hit the calculate button. Here is how the Compound Interest calculation can be explained with given input values -> 2.059E+20 = 1000000*(1+(8/1))^(1*15).