Top

Monthly Compound Interest Calculator
Top
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

## Steps for Monthly Compound Interest Calculator

Step 1 :

Pick out the given parameters from the question.

Step 2 :

Calculate the total amount to using the given formula.

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

Step 3 :

Determine the monthly compound interest using the given equation.

C=A-P

## Problems on Monthly Compound Interest Calculator

1. ### 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

Total amount, A=6740.9092

Monthly compound interest, C=1740.9092

2. ### 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