Transum Software

Compound Interest Calculator

A customised online calculator for quickly finding the solutions to compound interest problems.

Compound Interest Calculator Online Exercise Exam-Style More Calculator Activities
Present Value (PV):
Currency:
Number of years (n):
Interest rate (r):%
Compounding periods (k):
Future Value (FV):
Interest (I):

Compound interest can be calculated by using the following formula to calculate the final amount or future value (FV)

$$FV = PV(1 + \frac{r}{100})^n $$

\(PV\) is the present value.

\(n\) is the number of years.

\(r\) is the rate of interest.

or by using the iterative function

$$x_{n+1} = x_n + \frac{x_n \times r}{100} $$

where \(x_0\) is the present value [See Calculator Workout Skill 16]

$$FV = PV(1 + \frac{r}{100k})^{kn} $$

\(PV\) is the present value.

\(n\) is the number of years.

\(r\) is the rate of interest.

\(k\) is the number of compounding periods per year.

Advanced feature:
To calculate depreciation use a negative interest rate (r).

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This web site contains over a thousand free mathematical activities for teachers and pupils. Click here to go to the main page which links to all of the resources available.

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Comment recorded on the 3 October 'Starter of the Day' page by S Mirza, Park High School, Colne:

"Very good starters, help pupils settle very well in maths classroom."

Comment recorded on the 1 May 'Starter of the Day' page by Phil Anthony, Head of Maths, Stourport High School:

"What a brilliant website. We have just started to use the 'starter-of-the-day' in our yr9 lessons to try them out before we change from a high school to a secondary school in September. This is one of the best resources on-line we have found. The kids and staff love it. Well done an thank you very much for making my maths lessons more interesting and fun."

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Featured Activity

Playing Card Maths

Playing Card Maths

Imagine you are on a desert island with nothing but a pack of playing cards. Do you have to stop learning mathematics? Of course not! Here are some great ideas for teachers, parents and tutors.

Numeracy

"Numeracy is a proficiency which is developed mainly in Mathematics but also in other subjects. It is more than an ability to do basic arithmetic. It involves developing confidence and competence with numbers and measures. It requires understanding of the number system, a repertoire of mathematical techniques, and an inclination and ability to solve quantitative or spatial problems in a range of contexts. Numeracy also demands understanding of the ways in which data are gathered by counting and measuring, and presented in graphs, diagrams, charts and tables."

Secondary National Strategy, Mathematics at key stage 3

Go Maths

Learning and understanding Mathematics, at every level, requires learner engagement. Mathematics is not a spectator sport. Sometimes traditional teaching fails to actively involve students. One way to address the problem is through the use of interactive activities and this web site provides many of those. The Go Maths main page links to more activities designed for students in upper Secondary/High school.

Teachers

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Transum,

Tuesday, September 10, 2024

"As a rough, 'rule of thumb', divide 72 by the percentage interest rate and you’ll have a great estimate for the number of years required for your investment to double."

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