Monthly Compound Interest Calculator

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Where A is the total amount

p is the initial or principal amount

r is the rate of interest

t is the time period

**Step 1 :**

**Step 2 :**

**Step 3 :**

In mathematics, monthly compound interest calculator is used to calculate the compound interest in every month. In the case of compound interest, it is adding to the principal amount in every month. And we have to find out the compound interest in every month using the added principal amount. The formula to calculate the monthly compound interest is given by,

Where A is the total amount

p is the initial or principal amount

r is the rate of interest

t is the time period

Pick out the given parameters from the question.

Calculate the total amount to using the given formula.

A=P(1+$\frac{r}{12})^{(12\times t)}$

Determine the monthly compound interest using the given equation.

C=A-P

An amount of 5000 is deposited in a bank. The annual rate of interest is given by 10%. Calculate the total amount and monthly compound interest after 3 year?

**Step 1 :**The given parameters are,

P=5000, r=10%=0.1, t=3

**Step 2 :**Substitute the values in the given equation

A=P(1+$\frac{r}{12})^{(12\times t)}$

A=5000$\times$(1+$\frac{0.10}{12})^{(12\times 3)}$

A=5000$\times$1.34818

A=6740.9092

**Step 3 :**The monthly compound interest is given by,

C=A-P

C=6740.9092-5000

C=1740.9092

**Answer :**Total amount, A=6740.9092

Monthly compound interest, C=1740.9092

Calculate the total amount as well as monthly compound interest of the principal amount 10000 at the rate of interest 4% after 5 years?

**Step 1 :**It is given that,

P=10000, r=4%=0.04, t=5

**Step 2 :**The total amount is given by,

A=P(1+$\frac{r}{12})^{(12\times t)}$

A=10000$\times$(1+$\frac{0.04}{12})^{(12\times 5)}$

A=10000$\times$1.220996=12209.9659

**Step 3 :**The monthly compound interest is given by,

C=A-P

C=12209.9659-10000=2209.9659

**Answer :**Total amount, A=12209.9659

Monthly compound interest, C=2209.9659