C Program For Compound Interest

Compound interest is the interest calculated on both the original principal and the interest accumulated in previous periods. In other words, it is interest earned on interest.

• The accumulated interest is added to the principal, so the interest for the next period is calculated on the increased amount.
• Unlike simple interest, compound interest grows over time because the interest is repeatedly added to the principal.

Formula to calculate compound interest annually is given by: 

Amount= P(1 + R/100)^t
Compound Interest = Amount - P

Where, 

• P is principal amount 
• R is the rate and 
• T is the time span

Example:

Input: Principal (amount): 1200
Time: 2
Rate: 5.4

Output: Compound Interest = 133.099243

#include <stdio.h>

// For using pow function we must 
// include math.h
#include<math.h> 

// Driver code
int main() 
{
  // Principal amount
  double principal = 10000; 

  // Annual rate of interest
  double rate = 5; 

  // Time
  double time = 2; 

  // Calculating compound Interest
  double Amount = principal * 
                  ((pow((1 + rate / 100), 
                    time)));
  double CI = Amount - principal;
 
  printf("Compound Interest is : %lf",CI);
  return 0;
}

Compound Interest is : 1025.000000