Compound Interest Calculator Yearly

 

Introduction

Compound interest is a powerful financial concept that allows you to earn interest not only on your initial investment but also on the interest accrued over time. To make these complex calculations easier, a Compound Interest Calculator comes in handy. In this article, we will provide you with a simple and efficient calculator built with HTML and JavaScript.

How to Use

  1. Enter the principal amount in the designated input field.
  2. Input the annual interest rate as a percentage.
  3. Specify the number of years you want to calculate compound interest for.
  4. Click the “Calculate” button to obtain the result.

Formula

The formula for calculating compound interest is given by:

Where:

  • is the total amount after interest.
  • is the principal amount.
  • is the annual interest rate.
  • is the time in years.

Example

Let’s say you invest $1,000 at an annual interest rate of 5% for 3 years. Using the formula, the compound interest would be calculated as follows:

Result

The compound interest would be the amount obtained by subtracting the principal from the total amount.

FAQs

Q: Can I leave any input field blank?
A: No, all input fields must be filled for accurate calculations.

Q: What unit should I use for the principal amount and interest rate?
A: Use the same currency for the principal amount, and express the interest rate as a percentage.

Q: Why is the result not updating after clicking “Calculate”?
A: Ensure that all input values are numerical, and try again.

Conclusion

The Compound Interest Calculator provides a quick and precise way to determine the growth of your investment over time. Utilize this tool wisely for financial planning and decision-making.

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