Calculating Yearly Salary to Hourly Rate

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Compound Interest Calculator

Your future investment value will appear here.

Understanding Compound Interest

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.

Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. It is the process of earning interest on interest. This makes your money grow exponentially over time, compared to simple interest, which is calculated only on the principal amount.

The formula for compound interest is:

A = P (1 + r/n)^(nt)

  • A = the future value of the investment/loan, including interest
  • P = the principal investment amount (the initial deposit or loan amount)
  • r = the annual interest rate (as a decimal)
  • n = the number of times that interest is compounded per year
  • t = the number of years the money is invested or borrowed for

Understanding how compound interest works is crucial for long-term financial planning, whether you're saving for retirement, investing in stocks, or taking out a loan. The earlier you start, and the more frequently your interest compounds, the greater the potential for growth.

function calculateCompoundInterest() { var principal = parseFloat(document.getElementById("principal").value); var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value); var compoundingFrequency = parseFloat(document.getElementById("compoundingFrequency").value); var timeInYears = parseFloat(document.getElementById("timeInYears").value); var resultElement = document.getElementById("result"); // Input validation if (isNaN(principal) || isNaN(annualInterestRate) || isNaN(compoundingFrequency) || isNaN(timeInYears) || principal < 0 || annualInterestRate < 0 || compoundingFrequency <= 0 || timeInYears < 0) { resultElement.innerHTML = "Please enter valid positive numbers for all fields. Compounding frequency must be greater than 0."; return; } var ratePerPeriod = annualInterestRate / 100 / compoundingFrequency; var numberOfPeriods = compoundingFrequency * timeInYears; var futureValue = principal * Math.pow(1 + ratePerPeriod, numberOfPeriods); var totalInterestEarned = futureValue – principal; resultElement.innerHTML = "Initial Investment: $" + principal.toFixed(2) + "" + "Annual Interest Rate: " + annualInterestRate.toFixed(2) + "%" + "Compounding Frequency: " + compoundingFrequency + " times per year" + "Time Period: " + timeInYears + " years" + "Future Value: $" + futureValue.toFixed(2) + "" + "Total Interest Earned: $" + totalInterestEarned.toFixed(2) + ""; } .calculator-container { font-family: sans-serif; max-width: 600px; margin: 20px auto; padding: 20px; border: 1px solid #ccc; border-radius: 8px; background-color: #f9f9f9; } .calculator-title { text-align: center; color: #333; margin-bottom: 20px; } .calculator-inputs { display: grid; grid-template-columns: repeat(auto-fit, minmax(250px, 1fr)); gap: 15px; margin-bottom: 20px; } .input-group { display: flex; flex-direction: column; } .input-group label { margin-bottom: 5px; font-weight: bold; color: #555; } .input-group input[type="number"] { padding: 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; } .calculator-button { display: block; width: 100%; padding: 12px 20px; background-color: #007bff; color: white; border: none; border-radius: 4px; font-size: 18px; cursor: pointer; transition: background-color 0.3s ease; } .calculator-button:hover { background-color: #0056b3; } .calculator-result { margin-top: 20px; padding: 15px; background-color: #e9ecef; border: 1px solid #ced4da; border-radius: 4px; font-size: 1.1em; color: #333; } .calculator-result p { margin: 5px 0; } .calculator-result strong { color: #007bff; } .calculator-explanation { margin-top: 30px; border-top: 1px solid #eee; padding-top: 20px; font-size: 0.95em; color: #666; } .calculator-explanation h3 { color: #333; margin-bottom: 10px; } .calculator-explanation ul { margin-top: 10px; padding-left: 20px; } .calculator-explanation li { margin-bottom: 5px; }

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