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Monthly Compound Interest Calculator
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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,


Monthly Compound Interest

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

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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

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  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



    Answer  :  

    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



    Answer  :  

    Total amount, A=12209.9659

    Monthly compound interest, C=2209.9659



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