This small application shows how to calculate the
compound interest of a saving.
Prerequisites:
When you deposit money in a savings account, your
money earns interest that is calculated every month or quarter, etc.
Because this is not money you need right away, the amount accrued can be
reinvested, thus boosting your interest so the next calculation would be
based on the original amount plus the new added value. This is the basis
of compound interest. The compound interest can be
calculated monthly or quarterly, etc based on the original amount you
deposited, the interest rate, and the period you and the institution agreed
upon. |