Va Loan Interest Rate Calculator

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Compound Interest Calculator

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 "interest on interest" phenomenon that allows your money to grow exponentially over time.

Understanding compound interest is crucial for both investors and borrowers. For investors, it means that the earlier you start saving and investing, the more time your money has to grow. For borrowers, compound interest can work against you, leading to a much larger debt than initially anticipated, especially with credit cards or long-term loans.

The formula for compound interest is:

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

Where:

  • 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

This calculator helps you visualize the power of compounding. By entering your initial investment, the annual interest rate, how often it's compounded, and the number of years, you can see how your investment could grow.

Calculate Your Compound Interest

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function calculateCompoundInterest() { var principal = parseFloat(document.getElementById("principal").value); var rate = parseFloat(document.getElementById("rate").value); var compoundingFrequency = parseInt(document.getElementById("compoundingFrequency").value); var years = parseFloat(document.getElementById("years").value); var resultDiv = document.getElementById("result"); if (isNaN(principal) || isNaN(rate) || isNaN(compoundingFrequency) || isNaN(years) || principal < 0 || rate < 0 || compoundingFrequency <= 0 || years < 0) { resultDiv.innerHTML = "Please enter valid positive numbers for all fields."; return; } var rateDecimal = rate / 100; var numberOfPeriods = compoundingFrequency * years; var amount = principal * Math.pow((1 + rateDecimal / compoundingFrequency), numberOfPeriods); var totalInterestEarned = amount – principal; resultDiv.innerHTML = "Future Value: $" + amount.toFixed(2) + "" + "Total Interest Earned: $" + totalInterestEarned.toFixed(2); }

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