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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 the Money is Invested)
FV = A*(1+(i/n))^(n*T)
This formula uses 4 Variables
Variables Used
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 the Money is Invested- Number of Years the 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: 1000000 --> No Conversion Required
Annual Interest Rate: 8 --> No Conversion Required
Number of Periods: 1 --> No Conversion Required
Number of Years the Money is Invested: 15 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
FV = A*(1+(i/n))^(n*T) --> 1000000*(1+(8/1))^(1*15)
Evaluating ... ...
FV = 2.05891132094649E+20
STEP 3: Convert Result to Output's Unit
2.05891132094649E+20 --> No Conversion Required
FINAL ANSWER
2.05891132094649E+20 <-- Future Value of Investment
(Calculation completed in 00.016 seconds)
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11 Other formulas that you can solve using the same Inputs

Net Present Value (NPV) for even cash flow
net_present_value = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment Go
Future Value of a Present Sum when Compounding Periods are given
future_value = Present Value*(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods) Go
Present Value of a Future Sum when compounding periods are given
present_value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods) Go
Future Value of Annuity
future_value_of_annuity = (Monthly Payment/Interest Rate)*((1+Interest Rate)^Number of Periods-1) Go
Annuity Payment
annuity_payment = (Rate per Period*Present Value)/(1-(1+Rate per Period)^-Number of Periods) Go
Future Value of a Present Sum when the number of periods is given
future_value = Present Value*exp(Rate of Return*Number of Periods) Go
Present Value of a Future Sum when number of periods is given
present_value = Future Value/exp(Rate of Return*Number of Periods) Go
Zero Coupon Bond Effective Yield
zero_coupon_bond_effective_yield = (Face Value/Present Value)^(1/Number of Periods)-1 Go
Rate of Interest(SI)
rate_of_interest = (Simple Interest*100)/(Principal Investment Amount*Time) Go
Simple Interest
simple_interest = (Principal Investment Amount*Rate of interest*Time)/100 Go
Doubling Time (Simple Interest)
doubling_time_(simple_interest) = 1/Annual Interest Rate Go

Compound Interest Formula

future_value_of_investment = Principal Investment Amount*(1+(Annual Interest Rate/Number of Periods))^(Number of Periods*Number of Years the 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 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).

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 the 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 and Number of Years the 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 the Money is Invested). To calculate Compound Interest, you need Principal Investment Amount (A), Annual Interest Rate (i), Number of Periods (n) and Number of Years the Money is Invested (T). With our tool, you need to enter the respective value for Principal Investment Amount, Annual Interest Rate, Number of Periods and Number of Years the 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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