Calculating Future Value With Compound Interest With Javascript

August 29, 2023 Post a Comment

I'm trying to work on a script where the user inserts a monthly income and gets the future value with compound interest after 30 years. As it is now, I've assigned some values for

Solution 1:

The Math.pow is unnecessary, since you are calculating and incrementing futureValue month by month. Simply multiply by 1 + monthlyRate. You also want to add the current value of the investment to the new investment before multiplying:

for ( i = 1; i <= months; i++ ) {
   futureValue = (futureValue + investment) * (1 + monthlyRate);
}

Alternatively, you can also calculate this in one go with the following formula:

futureValue = investment * (Math.pow(1 + monthlyRate, months) - 1) / monthlyRate;

Solution 2:

Below is the code to calculate compound interest.

functioncalculate() {
  p = document.getElementById("p").value;
  n = document.getElementById("n").value; // no. of compoundings per year
  t = document.getElementById("t").value; // no. of years
  r = document.getElementById("r").value;
  result = document.getElementById("result");

  // The equation is A = p * [[1 + (r/n)] ^ nt]
  A = (p * Math.pow((1 + (r / (n * 100))), (n * t)));

  // toFixed is used for rounding the amount with two decimal places.
  result.innerHTML = "The total amount is " + A.toFixed(2);

  result.innerHTML += "<br> The interest is " + (A.toFixed(2) - p).toFixed(2);
}

div {
  display: table-row;
}

label,
input {
  display: table-cell;
}

<html><head><title>Compound Interest Calculation using jQuery</title></head><body><h1>Compound Interest Calculation Using jQuery</h1><div><label>Amount: </label><inputid="p"></div><div><label>Rate (%): </label><inputid="r"></div><div><label>No. of Years: </label><inputid="t"></div><div><label>Compunding Times Per Year: </label><inputid="n"value="1"></div><buttononclick="calculate()">Calculate</button><pid="result"></p></body></html>

Solution 3:

functionFVcalc(PresentAmount,InterestRate,NumberOfYears) {
    var timescompound = 1;
    varAnnualInterestRate = (InterestRate/100)/timescompound;
    varYears= NumberOfYearsvarPeriods=timescompound*Years;
    varNumPayments=Periods;
    varPrin=PresentAmount;

    MonthPayment=Math.floor((Prin)*(Math.pow((1+AnnualInterestRate),(Periods)))*100)/100;
    FVFactor=(Math.pow((1+AnnualInterestRate),(Periods)))
    returnMonthPayment
}

http://www.uic.edu/classes/actg/actg500/pfvatutor.htm

Solution 4:

Also I found with this alternative:

functioncompoundInterest(principal, annual_rate, n_times, t_years) {
    return principal*(Math.pow(1 + annual_rate/n_times, n_times*t_years) - 1);
}

Solution 5:

This will work for any case, note that period has a benchmark of 1 of a year so for instance every 6 months period = 2, 4 months period = 3 etc...

varinit = 500000var years = 30var compound = 1var interest = 3.99var period= 2var total = 0function CInterest(){
    for(let i=0; i<years*12; i++){
     
        if(i%(12/period) === 0){
            compound*=(1+((interest/100)/period))
        }
    }  
    total= init*compound
    }


    CInterest()
    console.log("total: ",total)

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