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.

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