*%*

5 Years

Period

₹ 1,00,000

Principal Amount

₹ 1,61,051

Total Amount

37.91

*%*
Interest % to Total Amount

#### What is the Compound Interest ?

The interest you earn each year is added to your principal, so that the balance doesn't merely grow, it grows at an increasing rate.

#### What is Principal Amount ?

The amount which you have invested.

#### What is Interest Rate ?

An interest rate is the cost of borrowing money, or conversely, the income earned from lending money. Interest rates are expressed as percentage of the principal per period.

#### What is Compound Interest Amount ?

calculate principal plus interest or principal or rate or time.

#### What is Frequency ?

The number of compounding periods in one year.

Here is the formula for finding the compound interest

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

- A = value after t periods
- P = principal amount (initial investment)
- r = annual interest rate
- n = number of times the interest is compounded per year
- t = number of years the money is borrowed for