This tutorial deals with how to calculate compound interest in Java. This was given an small assignment to one of my student Abhijit . This tutorial is idle for those who have just started learning java. In upcoming tutorial I will try to convert this command line application to simple GUI.

## Compound Interest Formula

**CI = P (1 + r/n) ^{(nt)} – P**

**where**

**P**= the principal investment amount (the initial deposit or loan amount)

**r**= the annual interest rate (decimal)

**n**= the number of times that interest is compounded per year

**t**= the number of years the money is invested or borrowed for

## Screen shot

## Compound Interest Java Code :

import P= Principle, r=Rate (Annual) ,t= Time Period, n= Frequency of calculation in one year.java.util.*;

/*

* By Abhijit Prasad (Student)

* Simple Interest Calculator

*/

class Compoundinterest{

public static void main(String args[]){

double p,r;

int t, n;

Scanner inp=new Scanner(System.in);

System.out.println("Enter the Principle: ");

p= inp.nextDouble();

System.out.println("Enter the Rate: ");

r = inp.nextDouble();

System.out.println("Enter the Time Period: ");

t=inp.nextInt();

System.out.println("Enter the Frequency: ");

n=inp.nextInt();

double ci=compInterest(p,r,t,n);

ci = java.lang.Math.round(ci);

System.out.println("Calculated Compund Interest: "+ci);

}

public static double compInterest(double pr, double ra, int t, int freq){

double ci= pr*java.lang.Math.pow(1+ra/(100*freq),freq*t);

return ci-pr;

}

}

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