Calculate Compound Interest Example
Example 1: Suppose you invest ₹50,000 in a fixed deposit account with an annual interest rate of 6%, compounded annually, for a period of 3 years.
After the first year, the interest earned would be ₹3,000 (6% of ₹50,000). In the second year, the interest is calculated on the new balance of ₹53,000, resulting in ₹3,180 interest. This process continues each year.
Year 1:
Initial Balance: ₹50,000
Interest Earned: ₹50,000 * 6% = ₹3,000
New Balance: ₹50,000 + ₹3,000 = ₹53,000
Year 2:
Initial Balance: ₹53,000
Interest Earned: ₹53,000 * 6% = ₹3,180
New Balance: ₹53,000 + ₹3,180 = ₹56,180
Year 3:
Initial Balance: ₹56,180
Interest Earned: ₹56,180 * 6% = ₹3,370.80 (rounded off to 2 decimal places)
New Balance: ₹56,180 + ₹3,370.80 = ₹59,550.80
After 3 years, the fixed deposit account would have a balance of ₹59,550.80.
Compound Interest Calculator
Our Online Compound Interest Calculator tool can help you calculate the future value of your investment considering compound interest.
Contact Us