Compound Interest Calculator

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How to Use

  1. Enter the principal amount
  2. Enter annual interest rate
  3. Enter time period in years
  4. Select compounding frequency
  5. Click Calculate to see maturity amount

Compound Interest Formula

A = P(1 + r/n)^(nt)

Example: Where P = Principal, r = Annual rate, n = Compounding frequency, t = Time in years

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Frequently Asked Questions

What is compound interest?

Compound interest is interest calculated on the initial principal and accumulated interest from previous periods.

How is it different from simple interest?

Simple interest is calculated only on principal, while compound interest is calculated on principal plus accumulated interest.

What is compounding frequency?

It is how often interest is calculated and added to the principal. Common frequencies are yearly, quarterly, monthly, or daily.

Which gives more returns?

Higher compounding frequency gives more returns. Daily compounding yields more than monthly or yearly compounding.

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