Java Program to calculate Compound Interest

Java Program to calculate Compound Interest

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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 into the formula.

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

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

 

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

 

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