Investment Calculator
The investment means an acquisition of a financial asset or allocation of money. Final balance equal to initial amount multiple 1 number of value added interest rate divided compound frequency multiple year.
Formula us,
final_balance = initial_amount * (1 + interest_rate / compound_frequency)(compound_frequency * years).
let us consider,
- Initial Investment and Desired Balance In financial term, they are the present value and the future value, which are linked together by the time value of money.
- Rate of Return the most relevant factors in your investment. the change in the value of the investment or its cash flow, such as interest payments or dividends.
- Term This is the time frame that you intend to resign from the usage of the money to gain profit.
- Compound Frequency Compound interest is one of the most powerful concepts in finance, and most financial/investment .
- Annual Inflation Rate the buying power of an amount of money, it is essential to take into account its dimension.
- Additional Contributions specific amount that you intend to add to your investment during its term.
Interest on investment formula
calculate the final balance
final_balance = initial_amount * (1 + interest_rate / compound_frequency)(compound_frequency * years).
initial amount = 10,000$
Interest rate = 5%
compound frequency = yearly
Final Balance is = 16,288. 95