Compound Interest Lab · Topic 3

A line and a curve, drawn from the same deposit. Drag the principal, the rate, the years. Watch how much of your future balance is the deposit, and how much is interest doing its quiet work.

Compound Interest Lab

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Inputs

Principal P $1,000

$100$100,000

Rate r 5.0%

0%15%

Time t 10 yr

1 yr40 yr

Frequency n 12 /yr

Future value monthly at year 10

$1,647.01

of which $1,000.00 principal · +$647.01 interest

Compounding earned you this much over plain simple interest.

+$147.01

APR vs APY

APY at n=12 · 5.116%

Frequency	n	APY (Y)