<-- Start Balance
<-- # of periods
<-- Interest rate
              
How much is 1600 worth after
36 months
using an annual interest rate of 1.75%
compounded monthly?

Calculate effective interest rate

There are 12 months in a year
Convert interest rate to monthly
Monthly Interest  =  Annual Interest Rate
  Compounding Periods

Monthly Interest  =  0.0175
  12

Monthly Interest = 0.0014583333333333

Calculate Accumulated Balance

A = B(1 + i)n
where A = accumulated balance
B = opening balance
i = Monthly interest rate
and n = number of periods

Plugging in our values

A = 1600(1 + 0.0014583333333333)36
A = 1600(1.0014583333333)36
A = 1600(1.053862257323)
A = 1,686.18

How much interest was earned?

Interest Earned = Accum. Value - Start Balance

Plug in our values

Interest Earned = 1,686.18 - 1,600.00
Interest Earned = 86.18

A = 1,686.18
Interest Earned = 86.18


You have 2 free calculationss remaining



What is the Answer?
A = 1,686.18
Interest Earned = 86.18
How does the Compound Interest Accumulated Balance Calculator work?
Free Compound Interest Accumulated Balance Calculator - Given an interest rate per annum compounded annually (i), semi-annually, quarterly, monthly, semi-monthly, weekly, and daily, this calculates the accumulated balance after (n) periods
This calculator has 3 inputs.

What 1 formula is used for the Compound Interest Accumulated Balance Calculator?

Bn = Bn - 1(1 + i)

For more math formulas, check out our Formula Dossier

What 5 concepts are covered in the Compound Interest Accumulated Balance Calculator?

compound interest
the interest you earn on principal and interest
A = (1 + r/n)nt
compound interest accumulated balance
interest rate
the proportion of a loan that is charged as interest to the borrower or proportion of principal credit given to a depositor
principal
The amount borrowed on a loan, before interest is charged
yield
How much an investment returns in terms of interest rate
Example calculations for the Compound Interest Accumulated Balance Calculator
  1. 2000 for 20 periods at 6% monthly
  2. 1050 for 10 periods using 5.25 percent compounded daily

Compound Interest Accumulated Balance Calculator Video


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