## Compound Interest

Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compounding.

Compound interest may be contrasted with simple interest, where interest is not added to the principal (there is no compounding). Compound interest is standard in finance and economics, and simple interest is used infrequently (although certain financial products may contain elements of simple interest).

To find out the value of compound interest we should have the future value ,principal amount,annual nominal interest rate,number of times the interest is compounded per year,number of years money borrowed.

## $$p\{1+\frac{r}{100}{\}}^{t}$$

Uses Principal Amount, rate and time

ENTER THE VARIABLES TO BE USED IN THE FORMULA