Many financial and government websites have compound interest calculators, such as Bankrate.com and Investor.gov. In addition, some mathematics-oriented websites also have compound interest calculators to illustrate particular uses of calculus in business, explains The Calculator Site.
One formula for calculating yearly compound interest is M=P(1+i)n. "M" represents the final amount with the principal and interest combined, "P" represents the principal amount, "i" represents the interest rate, and "n" is the number of years invested.
Calculate daily interest on a loan by visiting AIE.org and using its online daily interest calculator. This tool is particularly designed for students with academic loans, notes AIE.org.
Compound interest is a financial term used to describe the process where the interest earned on a principal investment over a set period of time is added to the principal amount. The interest payable for the following periods is recalculated on the sum of the original investment and the previous int
The difference between simple interest and compound interest is that simple interest builds only on the principal amount, while compound interest builds on both the principal and previously earned interest. Because of this, compound interest always yields greater profits.
To calculate interest, multiply the periodic interest rate by the principle amount. For example, if you borrowed $1000 with an interest rate of 10 percent, in a year your interest paid is $100.
A simple interest calculator figures out the amount of interest that is earned and added to an initial investment amount. To calculate the interest amount, a person must provide the interest amount, interest rate and period of investment. The calculator does the math and displays the total amount of
To find a free simple interest calculator online, visit math, business software publisher or financial sites, such as WebMath, Money Chimp and Pine Grove Software. The online calculators found on these sites may have different features, such as also calculating future values and daily interest rates
Real interest rate is calculated by adjusting for the effects of inflation when compared to the nominal interest rate. The calculation formula is simple, as it only requires subtracting the rate of inflation from the nominal interest rate. The value left after subtraction is the real interest rate.
Many finance websites, including Investopedia, CalculatorEdge and NCalculators.com, offer compounded annual growth rate calculators for their users. All of these sites require the user to input information essential for calculation of the compound annual growth rate.