What will be the amount earned on principal amount of Rs 10000 in 2 years at the rate of 20 per annum PA ?
Compound Interest CalculatorUse a calculator to know how much compound interest you will earn out of your investment, like a Fixed Deposit (FD) for example, if you are planning to apply for a term deposit. A compound interest calculator is a tool through which compound interest can be calculated online. Compound interest calculation can be done for different tenures and interest payout frequencies such as daily, monthly, quarterly, half-yearly or yearly. Understand the power of compound interest and see how it will help grow your investment by using an online compound interest calculator. In this write up we explore more about what is compound interest, how it benefits an investor, how you can use a compound interest calculator and much more. Read on further for more details. Show
What is Compound Interest?Compound interest, also known as compounding interest, is accumulated interest that is added to the principal amount invested to calculate the interest on a deposit. In simple words, compound interest is the ‘interest earned on interest’. This simply means that compound interest is earned on the principal plus the interest earned. The principal basically increases every year or depending on how frequently compound interest is calculated . Let us look at an example to better understand the concept of compound better:
The below table illustrates how interest is earned when the interest is compounded.
Compound interest calculation: Daily, monthly, quarterly, half-yearly, yearlyA compound interest calculator allows an investor to know how much interest he/she will earn for different interest computation frequencies. This may be on a daily, monthly, quarterly, half-yearly, or yearly basis. The interest compounding frequency makes a difference in the total interest that is earned on any type of deposit. To understand this better, let us take a look at an example:
Refer to the below table to understand how different interest compounding frequencies affect interest rate:
Compounding Frequencies
How to Calculate Compound Interest?Compound interest can be calculated using various online tools like a compound interest calculator for example. To do this calculation you need the following information:
You can use the BankBazaar compound interest calculator to know the total interest that will earned on a particular investment. All you need to do is to choose the investment amount, the interest rate and the time period for which you are putting in your money. Compound Interest FormulaThe compound interest formula is: A = P (1 + r/n) ^ nt
What is Compound Interest Calculator?A compound interest calculator is a tool that is used to calculate the total interest that will be earned on an investment. This tool is very convenient and easy to use and gives consumers the actual rate of return on an investment. This will help any prospective investor see how compound interest will grow their money. The tool is also advantageous because an investor can make a decision on how much he/she has to invest in order to reach a financial/investment goal. There are a number of benefits of using a compound interest calculator, let us understand some of them. Benefits of compound interest calculator:
If you want to estimate the exact yield of your investment for a particular tenure, use the BankBazaar online compound interest calculator. The calculator is customized to cater to all types of investors. So, any amount can be selected along with the tenure and interest rate. Compound Interest vs Simple InterestSo what is the difference between compound interest and simple interest? When it comes to simple interest, a certain fixed percentage of interest is paid for a certain tenure. Here the principal remains the same each year. However, in the case of compound interest the principal keeps increasing because the interest earned is added back to the principal. Let us take a look at the differences:
Let us understand more about the differences between simple and compound interest by using a comparison table below:
Advantages and features about compound interest that you must know
FAQs on Compound Interest Calculator
What will be the amount earned on principal amount of Rs 10000 in 2 years at the rate of 20 per annum pa?Difference = Rs 14641– Rs 14400= Rs 241.
What will be the Compound Interest accrued on an amount of ₹ 10000 at 20% pa in 2 years if the interest is compounded half yearly 2 points?CI=4641 INR.
What is the compound interest on Rs 10000 at 10% for 2 years?Compound Interest would be 12100rs.
What is the interest earned on Rs 1000 for 2 years?Answer. Answer: compound interest after 2yrs of 1000 Rs at the rate 10% per annum is 210 Rs.
|