How do I calculate monthly interest on a regular savings account?

How do I calculate compound interest in a savings account?

• Answer:

  The Easy WayThe easy way to calculate compound interest on your savings account is to use an online calculator. Enter the amount of your deposit, the number of months your money has been or will be in your account; your annual interest rate (not your annual percentage yield); and the compounding period. The calculator will immediately give you your annual percentage yield; your balance at the end of the period you selected; and the amount of interest you will earn.The Hard WayIf you prefer to do it the old-fashioned way, you can use this formula to calculate your compound interest: A = P(1 + r/n)^nt. "A" is your total balance, including interest, after "t" years; "P" is the amount of your original principal; "r" is your annual interest rate, in decimal form; "n" is the number times your interest is compounded each year; and "t" is the number of years your money is on deposit.More Information:http://cdrates.bankaholic.com/cd-interest-rate-calculator/http://qrc.depaul.edu/StudyGuide2007/Notes/Savings%20Accounts/Compound%20Interest.htm