Simple Interest Calculation

Investment amount: $1,000.00

Annual interest rate: 3.00%
Investment term (years): 1.00

Interest: $30.00
Investment at the end of the term: $1,030.00
Compound Interest Calculation
Monthly compounding

Investment amount: $1,000.00

Annual interest rate: 3.00%
Investment term (months): 12

Month Interest Balance

Earned
Beginning Balance $1,000.00
1 $2.50 $1,002.50
2 $2.51 $1,005.01
3 $2.51 $1,007.52
4 $2.52 $1,010.04
5 $2.53 $1,012.56
6 $2.53 $1,015.09
7 $2.54 $1,017.63
8 $2.54 $1,020.18
9 $2.55 $1,022.73
10 $2.56 $1,025.28
11 $2.56 $1,027.85
12 $2.57 $1,030.42 $1,030.42 <-- single formula
<-- single formula
Compound Interest Calculation
Single formula general solution

Investment amount: $5,000.00

Annual interest rate: 4.25%
Compounding periods/year 365
Term (years) 3

Periodic interest rate: 0.0116%

Investment value at end of term: $5,679.88
Total interest earned: $679.88

Annual yield: 4.53%

Continuous Compounding

Investment amount: $5,000.00

Annual interest rate: 4.25%
Compounding Continuous
Term (years) 3

Investment at end of term: $5,679.92

Years required to double an investment
Rule of 72 Actual
80.00
1% 72.00 69.66
2% 36.00 35.00 70.00
3% 24.00 23.45
60.00
4% 18.00 17.67
5% 14.40 14.21 50.00
6% 12.00 11.90 40.00
7% 10.29 10.24
8% 9.00 9.01 30.00

9% 8.00 8.04 20.00

10% 7.20 7.27
10.00
15% 4.80 4.96
20% 3.60 3.80 0.00
1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 15%
25% 2.88 3.11
Rul e of 72 Actua l
30% 2.40 2.64
 7% 8% 9% 10% 15% 20% 25% 30%
of 72 Actua l