# 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```