Write a Java Program to calculate compound interest.




Write a Java Program to calculate compound interest.

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 say an amount of $2,000 is deposited into a bank account as a fixed deposit at an annual interest rate of 8%, compounded monthly, the compound interest after 5 years would be:

P = 2000.
R = 8/100 = 0.08 (decimal).
n = 12.
t = 5.

Let’s put these values in the formula.

Compound Interest = 2000 (1 + 0.08 / 12) (12 * 5) – 2000 = $979.69

So, the compound interest after 5 years is $979.69.

In this java program we are calculating the compound interest, we are taking the same example that we have seen above for the calculation.

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: 979.6914166032102
Amount after 5 years: 2979.69141660321

 


Author Biography.

Lokesh Gupta
Lokesh Gupta

Overall 3+ years of experience as a Full Stack Developer with a demonstrated history of working in the information technology and services industry. I enjoy solving complex problems within budget and deadlines putting my skills on PHP, MySQL, Python, Codeigniter, Yii2, Laravel, AngularJS, ReactJS, NodeJS to best use. Through Knowledge of UML & visual modeling, application architecture design & business process modeling. Successfully delivered various projects, based on different technologies across the globe.



News & Blogs

b155c4808d155c5ed54a2d70f917f6ea.png

An Introduction to Angular: The Remarkable JS F...

Javascript frameworks have nowadays become the most popular and most-used web app development sol...

0752431b16084e2bc68868f7908c94a1.png

Develop RESTful API using Node JS, Express JS

REST (Representational State Transfer) is web standards based architecture and uses HTTP Pro...

6f5026c52c20b8aa8e6452b8934aa46b.png

How to Build a Real-time Chat App With NodeJS, ...

In this tutorial, we’ll be building a real-time chat application with NodeJS, Express, Sock...