Calculate the Future Investment Value and the Compound Interest earned by a principal of 10,000.00 (Dollar, Euro, Pound, ...), initial amount of money lent, deposited or borrowed, with a duration of 5 years, 9.60% annual interest rate, compounded monthly (12 times a year)

Calculation formula. Used notations. Project Breakdown.


[1] Calculation method used: 30 / 360

Number of days in a month = 30


Number of days in a year = 360


Number of months in a year = 12


[2] Future Investment Value, FV
Calculation formula:

FV =


P × (1 + r/n)n×t


FV, Future Investment Value


P, Principal (initial amount), P = 10,000.00


r, Annual compound interest rate, r = 9.60%


n, Number of times the interest compounds during a year
Compound frequency: monthly (12 times a year)
n = 12


r/n = 9.60%/12 = (9.60 ÷ 100)/12 = 9.60/(100 × 12)
r/n = 0.008


t, Duration of the investment
n×t, Duration of the investment, related to n

n×t =

+ 5 years × 12 months / year

n×t = 60 months


>> Compound Interest: what is it, how is it calculated?


Calculate FV
Substitute for the values in the FV formula:

FV =


P × (1 + r/n)n×t =


10,000.00 × (1 + 0.008)60 =


10,000.00 × 1.00860 =


10,000.00 × 1.612990934655 ≈


16,129.91


[3] Compound interest amount, CI
Calculation formula

CI = FV - P


CI, compound interest amount

FV, Future Investment Value

P, Principal (initial amount)


CI ≈


16,129.91 - 10,000.00 ≈


6,129.91


[4] Project Breakdown. Monthly.

Interest compounded: monthly (12 times a year).

Month Days Interest Total
interest
Balance
0 0 -- -- 10,000.00
1 30 80.00 80.00 10,080.00
2 30 80.64 160.64 10,160.64
3 30 81.29 241.93 10,241.93
4 30 81.94 323.86 10,323.86
5 30 82.59 406.45 10,406.45
6 30 83.25 489.70 10,489.70
7 30 83.92 573.62 10,573.62
8 30 84.59 658.21 10,658.21
9 30 85.27 743.48 10,743.48
10 30 85.95 829.42 10,829.42
11 30 86.64 916.06 10,916.06
12 30 87.33 1,003.39 11,003.39
13 30 88.03 1,091.41 11,091.41
14 30 88.73 1,180.15 11,180.15
15 30 89.44 1,269.59 11,269.59
16 30 90.16 1,359.74 11,359.74
17 30 90.88 1,450.62 11,450.62
18 30 91.60 1,542.23 11,542.23
19 30 92.34 1,634.56 11,634.56
20 30 93.08 1,727.64 11,727.64
21 30 93.82 1,821.46 11,821.46
22 30 94.57 1,916.03 11,916.03
23 30 95.33 2,011.36 12,011.36
24 30 96.09 2,107.45 12,107.45
25 30 96.86 2,204.31 12,204.31
26 30 97.63 2,301.95 12,301.95
27 30 98.42 2,400.36 12,400.36
28 30 99.20 2,499.56 12,499.56
29 30 100.00 2,599.56 12,599.56
30 30 100.80 2,700.36 12,700.36
31 30 101.60 2,801.96 12,801.96
32 30 102.42 2,904.38 12,904.38
33 30 103.24 3,007.61 13,007.61
34 30 104.06 3,111.67 13,111.67
35 30 104.89 3,216.57 13,216.57
36 30 105.73 3,322.30 13,322.30
37 30 106.58 3,428.88 13,428.88
38 30 107.43 3,536.31 13,536.31
39 30 108.29 3,644.60 13,644.60
40 30 109.16 3,753.76 13,753.76
41 30 110.03 3,863.79 13,863.79
42 30 110.91 3,974.70 13,974.70
43 30 111.80 4,086.49 14,086.49
44 30 112.69 4,199.18 14,199.18
45 30 113.59 4,312.78 14,312.78
46 30 114.50 4,427.28 14,427.28
47 30 115.42 4,542.70 14,542.70
48 30 116.34 4,659.04 14,659.04
49 30 117.27 4,776.31 14,776.31
50 30 118.21 4,894.52 14,894.52
51 30 119.16 5,013.68 15,013.68
52 30 120.11 5,133.79 15,133.79
53 30 121.07 5,254.86 15,254.86
54 30 122.04 5,376.90 15,376.90
55 30 123.02 5,499.91 15,499.91
56 30 124.00 5,623.91 15,623.91
57 30 124.99 5,748.90 15,748.90
58 30 125.99 5,874.90 15,874.90
59 30 127.00 6,001.89 16,001.89
60 30 128.02 6,129.91 16,129.91
Month Days Interest Total
interest
Balance

Answer:

Principal (initial amount) = 10,000.00

Future Investment Value = 16,129.91

Compound interest amount = 6,129.91


More calculations on Compound Interest and Future Investment Value:

Calculator: Compound Interest, Future Investment Value

FV = P × (1 + r/n)n×t + A × [(1 + r/m)m×t - 1] ÷ r/m

FV = Future Value of investment

P = Principal amount invested (the original contribution)

A = Regular contribution (additional money added periodically to the initial investment, P)

r = Annual Interest Rate the investment is earning

n = Number of times the interest compounds during a year

m = Number of times the regular contribution is made during a year

t = Number of years the investment is going to be active

t and r are expressed using the same time units

The Latest Calculations: Compound Interest Amounts and Future Investment Values

Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 10,000.00 Annual Interest Rate: 9.60% Compound Frequency: monthly Duration: 5 years Mar 29 07:58 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 1.91 Annual Interest Rate: 2.00% Compound Frequency: daily Duration: 2 years 1 month and 22 days Mar 29 07:58 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 1.13 Annual Interest Rate: 2.00% Compound Frequency: daily Duration: 10 months and 9 days Mar 29 07:58 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 262.00 Annual Interest Rate: 23.89% Compound Frequency: daily Duration: 1 year 1 month and 16 days Mar 29 07:58 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 101.00 Annual Interest Rate: 3.00% Compound Frequency: daily Duration: 1 year 5 months and 17 days Mar 29 07:58 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 1.00 Annual Interest Rate: 2.00% Compound Frequency: daily Duration: 4 years 2 months and 26 days Mar 29 07:58 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 10,188.00 Annual Interest Rate: 36.00% Compound Frequency: daily Duration: 4 months and 26 days Mar 29 07:58 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 1.03 Annual Interest Rate: 2.00% Compound Frequency: daily Duration: 5 years 2 months and 23 days Mar 29 07:58 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 102.00 Annual Interest Rate: 20.00% Compound Frequency: daily Duration: 5 years 5 months and 28 days Mar 29 07:57 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 39,240.00 Annual Interest Rate: 8.00% Compound Frequency: daily Duration: 4 years and 9 days Mar 29 07:57 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 1.82 Annual Interest Rate: 2.00% Compound Frequency: daily Duration: 4 years 7 months and 14 days Mar 29 07:57 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 1.63 Annual Interest Rate: 2.00% Compound Frequency: daily Duration: 4 years 11 months and 25 days Mar 29 07:57 UTC (GMT)
Calculate the Compound Interest Amount and the Future Investment Value. Principal (Initial Amount): 1.68 Annual Interest Rate: 2.00% Compound Frequency: daily Duration: 1 month and 1 day Mar 29 07:57 UTC (GMT)
All the Calculations: Compound Interest Amounts and Future Investment Values


Compound interest.

Interest. Simple and compound interest. Differences.

How is the compound interest being calculated?

>> Full article: compound interest