How to calculate compound interest in Java

1 Answer

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public class CompoundInterestCalculator {

    public static double calculateCompoundInterest(double principal, double rate, double years) {
        if (principal < 0 || rate < 0 || years < 0) {
            System.out.println("Error: Principal, rate, and years must be non-negative values.");
            return -1;
        }
        // Calculate total amount using the compound interest formula
        double amount = principal * Math.pow(1 + rate / 100, years);
        
        // Return compound interest
        return amount - principal;
    }

    public static void main(String[] args) {
        double principal = 100000;
        double rate = 3.5;
        double years = 5;

        double interest = calculateCompoundInterest(principal, rate, years);

        if (interest >= 0) {
            System.out.printf("Principal Amount: %.2f%n", principal);
            System.out.printf("Annual Interest Rate: %.2f%%%n", rate);
            System.out.printf("Years: %.2f%n", years);
            System.out.printf("Compound Interest: %.2f%n", interest);
            System.out.printf("Total Amount: %.2f%n", principal + interest);
        }
    }
}



/*
run:
    
Principal Amount: 100000.00
Annual Interest Rate: 3.50%
Years: 5.00
Compound Interest: 18768.63
Total Amount: 118768.63
    
*/

 



answered Aug 30, 2025 by avibootz
edited Aug 30, 2025 by avibootz

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