Simple and Compound and Continuous Interest Calculator

Enter 3 out of 4 below

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

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 = Pe^{rt}

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