C Program to Calculate Compound Interest

Python, Simple-C-Program

In this article, we are going to learn how to calculate Compound Interest using a C language program. The Compound Interest can be calculated by using a simple formula. The formula for Compound interest is:

Formula to calculate Compound Interest

Amount = Principal(1 + Rate/Num)^(NumTime)

Where:

  • Amount: This is the amount value including interest and principal.
  • Principal: This is the amount borrowed on interest.
  • Rate: This is the rate in % at which interest will be charged
  • Num: This number tells us how interest will be compounded. For example, Quarterly, Half Yearly, Annually.
  • Time: This is the time for which this money is borrowed.

The Compound interest earned can be calculated with the below calculation once you have the Amount.

CompoundInterest = Amount - Principal;

C Program to Calculate Compound Interest

Now let us see this formula in action using the C program below. We are asking the user to enter Principal, Interest, rate, and Time values and calculating the compound interest by using the above formula.

#include<stdio.h>
#include<math.h>
int main()
{

     float PrincipalAmt, time, rate, num, Amount;
     
     printf("Please enter the Principal Amount: ");
     scanf("%f",&PrincipalAmt);
     printf("Please enter the Rate of Interest: ");
     scanf("%f",&rate);
     printf("Please enter the Time: ");
     scanf("%f",&time);
     printf("Please enter the Number of Compounding: ");
     scanf("%f",&num);

  
    Amount = PrincipalAmt*pow( (1+(rate/num)), (num*time));

   
    printf("The Amount will become : %.2f\n",Amount);

    long CompoundInterest = Amount - PrincipalAmt;

    printf("The Compound Interest Earned is : %.2f\n",CompoundInterest);

   return 0;
}

Output

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