Compound interest calculator with graph help |

Settings | Remark | |||||||

Time period (T) |
Time period (T) is the length of time that the money is borrowed or lend. Decimal numbers can be entered. The interest (I) is calculated at the end of each compounded period. There are two ways to specify the time period: **Method 1:** Enter a value and select the unit time period: days, weeks, bi-weeklies, semi-monthlies, months, bi-monthlies, quarters, semi-annuallies or years. Using bi or semi in front of time periods means:
**bi = every two** For example: bi-weekly = every two weeks bi-monthly = every two months
**semi = twice a** For example: semi-annually = twice a year semi-monthly = twice a month
**Method 2:** Select a from date and to date. The number of days between the from and to date is the time period.
Example 1: How time period will be adjusted:Interest rate = 5% per year Time period = 7 weeks 52 weeks equals 1 year Thus 7 weeks equals 7/52 = 0.1346 years Example 2: How time period will be adjusted:Interest rate = 5% per year Time period = 2 quarters 4 quarters equals 1 year Thus 2 quarters equals 2/4 = 0.5 year Example 3: How time period will be adjusted:Interest rate = 5% year Time period = 5 bi-weeklies 26 bi-weeklies equals 1 year Thus 5 bi-weeklies equals 5/26 = 0.1923 year The compound interest equation:
where: FV = Future value I = Interest amount P = Principal initial amount R = Nominal interest rate per year (as a decimal, not in percentage) T = Time period in years N = Number of compounding periods in one year |