Enter 3 out of 4 below

<-- Accum Value
<-- Principal
<-- Interest %
<-- Time
      

Given an accumulated balance of 10000,
at an interest rate of 6% at time 8

Calculate the Principal using Compound Interest:

Accumulated Balance Formula

Accumulated Value = Principal x (1 + i)time

Divide each side by (1 + i)time

Accumulated Value
(1 + interest rate)time
=
  
Principal x (1 + interest rate)time
(1 + interest rate)time

Principal  =  Accumulated Value
  (1 + interest rate)time

Plug in our values

Principal  =  10000
  (1 + 0.06)8

Principal  =  10000
  (1.06)8

Principal  =  10000
  1.5938480745308

Calculate the total interest earned:

Total Interest Earned = Accumulated Value - Principal

Total Interest Earned = 6274.12 - 6274.12

Total Interest Earned = 0

Calculate the interest earned:

Interest per Period  =  Interest Earned
  t

Interest per Period  =  0
  8

Interest per period = 0

Final Answer

Principal using Compound Interest = 6274.12





What is the Answer?
Principal using Compound Interest = 6274.12
How does the Simple and Compound and Continuous Interest Calculator work?
Free Simple and Compound and Continuous Interest Calculator - Calculates any of the four parameters of the simple interest formula or compound interest formula or continuous compound formula
1) Principal
2) Accumulated Value (Future Value)
3) Interest
4) Time.
This calculator has 4 inputs.

What 3 formulas are used for the Simple and Compound and Continuous Interest Calculator?

Accumulated Value = Principal * (1 + (interest rate * time))
Accumulated Value = Principal x (1 + interest rate)time
Accumulated Value = Pert

For more math formulas, check out our Formula Dossier

What 5 concepts are covered in the Simple and Compound and Continuous Interest Calculator?

accumulated value
The total value of an investment, including principal and interest accrued
future value
the value of a current asset at a future date based on an assumed rate of growth
interest
payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
principal
The amount borrowed on a loan, before interest is charged
simple and compound and continuous interest
Simple and Compound and Continuous Interest Calculator Video

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