With compounding, each period's interest is added to the principal and earns interest itself. ৳1 lakh at 10% for 5 years grows to ৳1,61,051 compounded yearly and ৳1,64,531 compounded monthly.
= 1 lakh taka
= 60 months
Compound amount
৳1,61,051
Compound interest ৳61,051
৳1,00,000 at 10% for 5 years, compounded yearly, grows to ৳1,61,051 (interest ৳61,051).
| Year | Amount | Total interest |
|---|---|---|
| 1 | ৳1,10,000 | ৳10,000 |
| 2 | ৳1,21,000 | ৳21,000 |
| 3 | ৳1,33,100 | ৳33,100 |
| 4 | ৳1,46,410 | ৳46,410 |
| 5 | ৳1,61,051 | ৳61,051 |
The link includes the numbers you entered
A = P × (1 + r/k)^(k × n) and compound interest = A − P
| Compounding | Amount | Interest |
|---|---|---|
| Yearly | ৳1,61,051 | ৳61,051 |
| Quarterly | ৳1,63,862 | ৳63,862 |
| Monthly | ৳1,64,531 | ৳64,531 |
| (Simple interest) | ৳1,50,000 | ৳50,000 |
Effective annual rate = (1 + r/k)^k − 1: 10.47% for 10% compounded monthly. Doubling time ≈ 72 ÷ rate; exactly ln 2 ÷ ln(1 + r).
Interest added to the principal at the end of each period, so the next period earns interest on a larger amount — interest on interest.
A = P(1 + r/k)^(k×n), where k is how many times per year interest is added. Compound interest = A − P.
At 10%, monthly compounding is an effective 10.47% a year — about ৳3,480 more than yearly on ৳1 lakh over 5 years.
Roughly 72 ÷ rate years: about 7.2 years at 10%. The calculator shows the exact figure.
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