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How to Calculate Compound Interest?

Learn about compound interest and its calculation.

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How to Calculate Compound Interest?

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  1. How to Calculate Compound Interest ?

  2. What is Compound Interest? The interest calculated on the original principal plus the interest that is not paid for the previous periods is called as the compound interest. It is also known as compounding. The period of compounding differs (annually , monthly,..)

  3. Example Consider you borrow a sum of Rs. 5000 from a lendor for an interest of 10 % for 4 years. For 1st year : 5000 * (10 / 100) = 500 For 2nd year : 5500 * (10 / 100) = 550 For 3rd year : 6050 * (10 / 100) = 605 For 4th year : 6655 * (10 / 100) = 665.5 Hence, After 4 years you have to pay (5000 + (500+550+605+665.5) = 5000 + 2320.5 = Rs. 7320.5

  4. Formula of Compound Interest and Total Amount

  5. CI Calculator • Find your CI and total amount to be paid for • your principal money using online calculator. • Enter the borrowed money, interest and • compounding period into the calculator. • Your CI and total amount to be paid will be • yielded by the calculator.

  6. CI Calculator

  7. Get Online Compound Interest Calculator @ https://www.easycalculation.com/compound-interest.php Find more interesting and useful calculators at Easycalculation.com

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