# Google Docs Forex Compund Calculator ### Solved Example Problems

The below solved example problems for compound interest may used to understand how the values of Principal amount P, Rate of interest R, Time period n & componding frequency are being used in the monthly, quarterly, half-yearly or yearly compounding formulas to find the total interest payable.

Example Problem 1:
How much amount of compound interest payable on a principal sum of 10,000 USD at 9% rate of interest for the total period of 3 years with yearly compounding frequency or period?

Solution:
P = 10,000 USD on yearly compounding frequency
R = 9%
n = 3 Years

apply these above values in the below annual compound interest formula
CIyearly = P [1 + (R/100)n]
= 10000 x [1 + (9/100)3]
= 2950.29
The total interest payable is 2950.29 USD

Example Problem 2:
How much amount of total interest payable on a principal sum of 20,000 USD at 7% rate of interest for the total period of 4 years with half-yearly compounding frequency or period?

Solution:
P = 20,000 USD on half-yearly compounding frequency
R = 7%
n = 4 Years

apply these above values in the below semi-annual compound interest formula
CIhalf-yearly = P (1 + [(R/2)/100]2n)
= 20000 x (1 + [(7/2)/100](2 x 4)
= 6336.18
The total interest payable is 6336.18 USD

Example Problem 3:
How much amount of total interest payable on a principal sum of 15,000 USD at 6% rate of interest for the total period of 5 years with quarterly compounding frequency or period?

Solution:
P = 15,000 USD on quarterly compounding frequency
R = 6%
n = 5 Years

apply these above values in the below quarterly compound interest formula
CIquarterly = P (1 + [(R/4)/100]4n)
= 15000 x (1 + [(6/4)/100](4 x 5)
= 5202.83
The total interest payable is 5202.83 USD

Example Problem 4:
How much amount of total interest payable on a principal sum of 25,000 USD at 5% rate of interest for the total period of 3 years with monthly compounding frequency or period?

Solution:
P = 15,000 USD on monthly compounding frequency
R = 5%
n = 3 Years

apply these above values in the below monthly compound interest formula
CImonthly = P (1 + [(R/12)/100]12n)
= 25000 x (1 + [(5/12)/100](12 x 3)
= 4036.81
The total interest payable is 4036.81 USD

Compound interest is a very important interest calculation to determine the time value of money in many financial instruments.