Compound Interest Calculator

Simple interest is very rarely used in real life: almost all banks and other financial institutions use compound interest. This is when interest is added (or compounded) to the principal sum so that interest is paid on the whole amount. Under this method, if the interest for the first year is left in the account, the interest for the second year is calculated on the whole amount so far accumulated.

P (1 + r/n)^(nt)