Compound Interest Rate Calculators
The Compound Interest rate is equal to initial balance multiple future value divided to present value its divided to interest compounds principle.compound interest is to the existing balance. The compound interest is annual rate and frequency rate.
let us consider,
1.) Initial balance– the amount of money at the beginning present value(PV).
2.)Final balance– the amount of money at the end of the given period Future Value
3.)Surplus– the difference between the initial balance and the final balance;.
4.Term (t)– interest compounds onto your principal.
1.) Future Value
Future value equal to present value multiple 1 number value added interest rate divided to
numbers of value divided to interest compounds principal. The future value is compound interest is money beginning present value .
the formula as,
FV=PV*(1+r/n)nt
The compound interest rate formula as,
r=In(FV/PV)/t
Example ,
Initial balance 20,000 , final balance 19000, surplus 10000 , terms interest compound 10 years
r=20,000*(19000/20,000)/10
Answers is compound interest rate =0.51282%