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Java Program to Calculate the Compound Interest
In this article, we will understand how to calculate the Compound interest. Compound Interest is calculated using the following formula −
Principle*(1+(rate / 100))^time – Principle
Compound Interest − The percentage interest charged on principal and accrued interest. Rates are higher compared to Simple Interest.
Below is a demonstration of the same −
Input
Suppose our input is −
Enter a Principle number : 100000 Enter Interest rate : 5 Enter a Time period in years : 3
Output
The desired output would be −
The Compound Interest is : 15762.50000000001
Algorithm
Step 1 – START Step 2 – Declare four float values principle, rate, time, compound_interest Step 3 – Read values of principle, rate, time, from the user Step 4 – Perform “principle * (Math.pow((1 + rate / 100), time)) – principle” to calculate the compound interest and store it in a simple_interest variable Step 8 – Display compound_interest Step 10 – STOP
Example 1
Here, the input is being entered by the user based on a prompt. You can try this example live in ourcoding ground tool 
.
import java.util.Scanner;
public class CompoundInterest {
public static void main (String args[]){
double principle, rate, time, compound_interest;
System.out.println("Required packages have been imported");
Scanner my_scanner = new Scanner(System.in);
System.out.println("A Scanner object has been defined ");
System.out.print("Enter a Principle number : ");
principle = my_scanner.nextInt();
System.out.print("Enter Interest rate : ");
rate = my_scanner.nextInt();
System.out.print("Enter a Time period in years : ");
time = my_scanner.nextInt();
compound_interest = principle * (Math.pow((1 + rate / 100), time)) - principle;
System.out.println("The Compound Interest is : " + compound_interest);
}
}Output
Required packages have been imported A Scanner object has been defined Enter a Principle number : 100000 Enter Interest rate : 5 Enter a Time period in years : 3 The Compound Interest is : 15762.500000000015
Example 2
Here, the integer has been previously defined, and its value is accessed and displayed on the console.
public class CompoundInterest{
public static void main (String args[]){
double principle, rate, time, compound_interest;
principle = 100000;
rate = 5;
time = 3;
System.out.printf("The Principle amount is %f \nThe interest rate is %f \nThe time period in years is %f " , principle, rate, time);
compound_interest = principle * (Math.pow((1 + rate / 100), time)) - principle;
System.out.println("\nThe Compound Interest is: " + compound_interest);
}
}Output
The Principle amount is 100000.000000 The interest rate is 5.000000 The time period in years is 3.000000 The Compound Interest is: 15762.50000000001
Updated on: 21-Feb-2022
12K+ Views
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