Basic Financial Mathematics

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Constant Perpetuity

Compound Interest

Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan. In other words, interest on interest. On this page you can calculate 4 variables of compound interest: Present value, Future value, interest rate and number of periods.


Future Value:

1. Present Value:
? Do not use decimals. Example: 5000000

2. Number of Periods:
? Integer number. Example: 24

3. Periodic Interest Rate:
? You can use decimals, separated by coma or period. Example: 2,53



Present Value:

1. Future Value:
? Do not use decimals. Example: 5000000

2. Number of Periods:
? Integer number. Example: 24

3. Periodic Interest Rate:
? You can use decimals, separated by coma or period. Example: 2,53



Number of Periods:

1. Present Value:
? Do not use decimals. Example: 5000000

2. Future Value:
? Integer number. Example: 1000000

3. Periodic Interest Rate:
? You can use decimals, separated by coma or period. Example: 2,53



Interest Rate:

1. Present Value:
? Do not use decimals. Example: 5000000

2. Future Value:
? Integer number. Example: 1000000

3. Number of Periods:
? Integer number. Example: 24





By César Alejandro Guerrero For SmartGigas.com