Compounding interest, as opposed to simple interest, is the situation where your wealth increases exponentially because you earn interest on your total investments, the aggregation of your principal amount and the interest it incurs. Mathematically, the possibilities of compound interest are endless. Most of the modern business thrives on it. One needs a reliable compound interest calculator to ensure they are receiving the right ROI.
The nature of compound interest makes it extremely lucrative for businesses. When you use a compound interest calculator online, you can avail the following benefits.
Groww uses a globally standardized method to determine the total compound interest accrued. The formula is –
A = P (1 + r/n) ^ nt
The variables in the formula are the following.
|R/r||Rate of interest|
|N/n||Number of times interest compounds in a year|
|T/t||Number of years|
For example, if you invest Rs. 50,000 with an annual interest rate of 10% for 5 years, the returns for the first year will be 50,000 x 10/100 or Rs. 5,000.
For the second year, the interest will be calculated on Rs. 50,000 + Rs. 5000 or Rs. 55,000. The interest will be Rs. 5550.
For the third year, the amount will stand at Rs 6055 and so on.
Obviously, it is difficult to calculate these amounts manually. That is why you need a compound interest calculator in India to make the task easier.
Using Groww’s calculator is easy when you remember these easy steps.
Groww provides you with an accurate compound interest calculator for unlimited use. Groww is ideal for daily use thanks to –
Besides the compound interest calculator, you can also use a wide range of other calculators as seen below. Each one of our calculators is benchmarked against the best in the business and is ideal for everyday use.
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