Calculate Compound Interest C Program

C Program To Calculate Compound Interest

Let us learn how to write a program to calculate Compound Interest in C programming language. This C program to find compound interest takes in values of Principal Amount, ROI and Time Period from the user.

What is Compound Interest?

Compound Interest is the interest computed on the initial principal amount and also on the accumulated interest of previous periods of a deposit or a loan.

Formula To Find Compound Interest

a = p (1 + r/n) ^nt

where,

      a = value of the returns

      p = Principal Amount

      r = Rate of Interest

      n = Number of times that Interest is compounded each year

      t = Number of Years (Period)

Output

      p = ₹ 5000

      r = 10%

      n = 12

      t = 5

      Compound Interest = ₹ 8226.54

Must Read: C Program To Find Simple Interest using Functions

Method 1: C Program To Find Compound Interest without Function

#include<stdio.h>
#include<math.h>

int main()
{
      float principal, rate_of_interest, time_period, compound_interest;
      printf("\nEnter The Principal Amount:\t");
      scanf("%f", &principal);
      printf("\nEnter The Interest Rate:\t");
      scanf("%f", &rate_of_interest);
      printf("\nEnter The Time Period in Years:\t");
      scanf("%f", &time_period);
      compound_interest = principal * (pow((1 + rate_of_interest/100), time_period) - 1);
      printf("\nCompound Interest:\t%f\n", compound_interest);
      return 0;
}

Method 2: Calculate Compound Interest in C Programming using Function

#include<stdio.h>
#include<math.h>

float compound_interest(float p, float r, float n)
{
      float interest;
      interest = p*(pow((1 + r/100), n) - 1);
      return interest;
}

int main()
{
      float principal, rate_of_interest, time_period, result;
      printf("\nEnter The Principal Amount:\t");
      scanf("%f", &principal);
      printf("\nEnter The Interest Rate:\t");
      scanf("%f", &rate_of_interest);
      printf("\nEnter The Time Period in Years:\t");
      scanf("%f", &time_period);
      result = compound_interest(principal, rate_of_interest, time_period);
      printf("\nCompound Interest:\t%f\n", result);
      return 0;
}

Must Read: C Program To Find LCM of Two Numbers

Output

If you have any doubts or compilation errors in this C program to compute compound interest, let us know about it in the comment section below.