Calculators are scientific instruments that are used to compute the sum, calculate mortgage, compound interest as well as simple interest. When you have compound interest calculator, it makes it easier to determine the amount of money that you will pay in the long run after borrowing loan from a bank. Calculators vary in use so if you want a scientific calculator, you need to find one for just that and if you need compound growth calculator , make sure you specify the use before paying for it.
To find the compound interest, it is important first to calculate the interest of says the first year then whatever amount of money, you add it to the principle. The sum of the first principle and the interest found upon computation now form the new principle, so, what you do is to keep calculating the interest, adding to the new principle for the total number of years needed to pay up the loan. The total sum of money that you find will be the full amount of money that you will be required to pay. When you subtract that amount from the initial principle, whatever remains is referred to as the compound interest.
One of how one can calculate their compound interest is by use of the APY formula; which is in full referred to as the Annual Percentage Yield which is the. To use the APY formula, you add the rate in decimal form to 1 and then raise it to power n minus one where n is the duration that it will take to pay up the loan, whatever amount you get is the compounding interest that is expected at the end of the period. Compound interest is great because it earns interest on the interest that you have already acquired.
It is also important to note that, just like ordinary calculators, APY calculators also vary based on the manufacturer; this factor means that, one should be careful in their selection to ensure that they get the best calculator within their price range. Some of the features of a good APY calculator include the fact that, they should not be rigid in that, it should offer you an option to feed in whatever amount of money to deposit per month. It is also important for the calculator to provide various rates that you can then use to calculate the compounding interest for the specified duration just to mention a few elements of this calculator. If you want to learn more about Compound Interest , you can visit https://en.wikipedia.org/wiki/Financial_planner.
It is therefore important to make sure that, before settling on one apr calculator, you compare their capabilities before making a financial investment; when you do this, you will be sure to get value for your money.