subject: Compound Interest Calculator In Investments And Debts [print this page] The magic of how the compound interest works lies on the compound interest formula. How will one learn if he does not know the details to it? The compound interest is not a mere concept. It is something you have to learn and solve. Since the compound interest formula is a bit complicated and would take you too much time, the compound interest calculator was made. The compound interest calculator is made to give answers to compound interest problems. There are even some calculators that would give you a lot of information from just some inputs. It could give you timetables for one to learn more about the concept of compound interest.
The Benefits Of The Compound Interest Calculator In Investments And Debts
The compound interest calculator is able to provide you with an answer on how the different inputs can affect your profits or balance. With just some tweaking and imagination, it could give you mock interest rates that would fit your situation. These are just some pros about the compound interest calculator. Therefore, the concept of compound interest is far from the mere simple interest.
If saving is the option one chooses, then the compound interest calculator would be of significant use. It the calculator also helps if one will be enrolling for a loan. However, debts with the compound interest concept should be thought about first. This is because it brings you massive profits and outstanding balances, as well. One should be sure that he has the right amount of money to pay of a loan at the given due date. For savers, it is the best choice. One should not have to worry about paying. The money would grow even without it. Fortunately, increasing the principal amount ever month would give better results to your profits. If you dont believe me, then use the compound interest calculator!
Here, is how the compound interest calculator works:
The compound interest calculator uses the compound interest formula to get the total amount of profits or balances, as well as other part of the compound interest.
Total Profits/Balances = Principal Amount (1 + Rate of Interest / 100) ^ Number of Years
Compound Interest = Total Profits/Balances Principal Amount
Number of Years (if in month/s format):
1 month is equivalent to 0.08
2 months is equivalent to 0.17
3 months is equivalent to 0.25
4 months is equivalent to 0.33
5 months is equivalent to 0.42
6 months is equivalent to 0.50
7 months is equivalent to 0.58
8 months is equivalent to 0.67
9 months is equivalent to 0.75
10 months is equivalent to 0.83
11 months is equivalent to 0.92
Using this given information, you will be able to compute it manually. Fortunately, the compound interest calculator is free for everyone. All you are going to do is go online and search for the proper one that would suit your situation. There are also more complex calculators that will be able to give you more information after computing with your given data. So, What are you waiting for? Get yourself a compound interest calculator and learn more about the compound interest may that be in earning more or getting yourself out of a debt!
