Example #1: How much interest would accrue in 6 months for a loan or investment with a current balance of $1,000 and an interest rate of 12% compounded monthly? Assume no payment or deposit during the 6 months.
Enter the following values in the input fields:
Present Value = 1,000
Payment/Deposit = 0
Periods = 6
Periods/Year = 12
Interest Rate = 12
Payment/Deposit Timing does not matter since payment/deposit = 0.
Now click the Future Value Button.
The future value would be $1,061.52. Hence, $61.52 in interest. The Total Interest Compounded box also indicates 61.52. See the screen snapshot of this calculation below:
Example #2: How much interest would be paid on a loan over the next year if the current loan balance is $10,000 with monthly payments of $200 and an interest rate of 7% compounded monthly?
Enter the following values in the input fields:
Present Value = 10,000
Payment/Deposit = -200
Periods = 12
Periods/Year = 12
Interest Rate = 7
Set Payment/Deposit Timing for End.
Now click the Future Value Button.
Interest paid over the next year would be $644.38 as shown in the Total Interest Compounded box. See the screen snapshot of this calculation below:
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