Find the yearly compound interest earned from an investment with this Yearly Compound Interest Calculator. Input principal, yearly interest rate, and the amount of years the interest has been compounding.

### What is yearly compound interest and how do you find compound interest?

To find the final value of an investment use this compound interest

formula:

Investment Value = P x ( 1 + r/n )^{(Y x n)}

P = Principal Value

r = Yearly Interest Rate in decimal form ( example: 5% in decimal form

is .05 )

Y = Life of the investment in years

n = how many times per year the interest is compounded. In this case, yearly or 1 times per year.

Example: An original investment of $5,000 held for 3.5 years at an

interest rate of 5% would result in the following values.

If compounded yearly, the investment value would be:

Investment Value = $5,000 x ( 1 + .05/1)^{(3.5 x 1)}

Investment Value = $5,931.06

More Resources...

Compound Interest Intro VideoThe Marshmallow Game on Compound Interest

Compound Interest Tutorial