How To Calculate Compound Interest If You Don’t Have A Financial Calculator…

Tue, Nov 15, 2011

Investment

Example, you are an investor. You  invest your $10,000 in a financial instrument, giving you 9% interest, compounded on annual basis for 10 years. How much will you get, at the end of the 10 years?

If you are a financial planner, like me, you will definitely reach out your financial calculator and punch in these figures, to get the answers. idoiteveryday

Set: End
n: 10
i%: 9
PV: -10,000
FV: Solve

…..and in an instance, you will get $23,673.63

…………………………………………………………………………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………………………………………….

In my “financial planning for wealth manager” (catered for high networth individual) class, I learnt to calculate the answers, without using a financial calculator. You can use a normal, scientific calculator to get the answers.

How do you do that?

You can calculate it this way…..Use this formula….. Principal (1+interest)number of years

Just take 10,000 (1+0.09)10  = $23,673.63

Easy right?

For now, just remember this formula. In the next blog post, I will share with you the intricate mechanics of this formula. Share this blog post, if you find it useful! 🙂

 

p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…

My other related posts that may interest you:

, ,

This post was written by:

- who has written 422 posts on The Official Helmi Hakim Website.

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients' financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

Contact the author

Call to action

Leave a Reply