Calculate Compound Interest in Java
Here you will get the example code to Calculate Compound Interest in Java programming.
Calculate Compound Interest Formula
Amt = P(1 + r/n)^(nt)
Where:
Amt is final amount(principal + interest).
P is the principal amount
r is rate of interest (yearly).
n is the annual number of times interest is compounded.
t is time in years.
Example:
Suppose you invest rupees 1,000 (P) in a savings account with an annual interest rate of 5% (r). The interest is compounded annually (n = 1), and you plan to leave the money in the account for 3 years (t).
Using the compound interest formula:
Amt = P(1 + r/n)^(nt)
Amt = 1,000(1 + 0.05/1)^(1*3)
Amt = 1,000(1 + 0.05)^3
Amt = 1,000(1.05)^3
Amt = 1,000(1.157625)
Amt = 1,157.63
So, after 3 years of investing rupees 1,000 in a savings account with a 5% annual interest rate. You would have approximately rupees 1,157.63 in your account.
Program to Calculate Compound Interest in Java
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 | //Calculate Compound Interest in Java import java.util.Scanner; public class CIcalc { public static void main(String[] args) { Scanner scanner = new Scanner(System.in); System.out.print("Enter principal amount: "); double p = scanner.nextDouble(); System.out.print("Enter annual interest rate (in decimal form): "); double r = scanner.nextDouble(); System.out.print("Enter the number of times interest is compounded per year: "); int cf = scanner.nextInt(); System.out.print("Enter number of years: "); int t = scanner.nextInt(); scanner.close(); // Calculate compound interest double amt = p * Math.pow(1 + (r / cf), cf * t); // Display the result System.out.println("The final amount after " + t + " years will be: " + amt); } } |
Output
C:\CodeRevise\java>javac CIcalc.java
C:\CodeRevise\java>java CIcalc
Enter principal amount: 1000
Enter annual interest rate (in decimal form): 0.05
Enter the number of times interest is compounded per year: 1
Enter number of years: 3
The final amount after 3 years will be: 1157.6250000000002
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