Java Program to Calculate Compound Interest

In this example, we will write a java program to calculate compound interest.

Compound Interest Formula

Compound interest is calculated using the following formula:

P (1 + R/n) (nt) - P

Here P is principal amount.
R is the annual interest rate.
t is the time the money is invested or borrowed for.
n is the number of times that interest is compounded per unit t, for example if interest is compounded monthly and t is in years then the value of n would be 12. If interest is compounded quarterly and t is in years then the value of n would be 4.

Let's check Example

public class JavaExample {

    public void calculate(int p, int t, double r, int n) {
        double amount = p * Math.pow(1 + (r / n), n * t);
        double cinterest = amount - p;
        System.out.println("Compound Interest after " + t + " years: "+cinterest);
        System.out.println("Amount after " + t + " years: "+amount);
    }
    public static void main(String args[]) {
    	JavaExample obj = new JavaExample();
    	obj.calculate(2000, 5, .08, 12);
    }
}

 

Output

Compound Interest after 5 years: 979.69
Amount after 5 years: 2979.69