Php code for calculating compound interest?

Answer 1

The formula for compound interest is Final amount = Base amount * (1+(rate of interest/times compounded per year))^(number of times compounded per year * how many years pass)

To put this into PHP, it would go something like this:

function calcInt($rate, $numYear, $yearsElapsed, $base)
{
$finalAmount = $base*((1+($rate/$numYear))^($numYear*$yearsElapsed));
return $finalAmount;
}

To call this function and print the output, put:

echo $finalAmount(.05, 2, 4, 5000);

That would output the final amount if the interest rate is 5%, it's compounded twice per year, 4 years elapse, and the initial amount was $5000.