Hey guys!! Welcome to flower brackets blog. You are here to learn java interest rate program. Let us understand what is simple interest with an example.

#### What is simple interest?

Simple interest is a method to enumerate interest on invested amount or loan. It is calculated by multiplying principal amount, rate and time.

Also Read – Print Multiplication Tables Of Any Number In Java

Simple Interest = (Principal Amount * Rate * Time) / 100

#### Example: java interest rate program

Let’s see an example on java interest rate program,

import java.util.Scanner; public class SimpleInterestInJava { public static float SimpleInterest(float valuePrinciple, float valueRate, float valueTime) { float calInterest = (valuePrinciple * valueRate * valueTime) / 100; return calInterest; } public static void main(String[] args) { Scanner sc = new Scanner(System.in); System.out.println("Simple interest java program"); System.out.println("Please enter principal amount: " ); float getAmount = sc.nextFloat(); System.out.println("Please enter time(in years): "); float getTime = sc.nextFloat(); System.out.println("Please enter rate annually: "); float getRate = sc.nextFloat(); float getInterest =SimpleInterest(getAmount, getRate, getTime); System.out.println("Simple Interest is: " + getInterest); } }

**Output:**

**Without using method**

Now let’s learn java interest rate program without using method,

import java.util.Scanner; public class SimpleInterestJavaProgram { public static void main(String[] args) { float principal, rate, time; Scanner sc = new Scanner(System.in); System.out.print("Enter principal amount : "); principal = sc.nextFloat(); System.out.print("Please enter rate annually : "); rate = sc.nextFloat(); System.out.print("Please enter time(in years) : "); time = sc.nextFloat(); float simpleInterest; simpleInterest = (rate * time * principal) / 100; System.out.print("The Simple Interest is : " + simpleInterest); sc.close(); } }

**Output:**

Enter principal amount : 500000

Please enter rate annually : 2.5

Please enter time(in years) : 3

The Simple Interest is : 37500.0

**Compound interest in java**

Now let’s learn compound interest in java with an example. First let’s see compound interest formula in java,

```
// this formula finds compound interest annually
Compound Interest = P (1 + R / 100) r
Where,
P is the principle amount
R is the rate and
T is the time
```

Here’s the code for compound interest java program,

public class JavaCompoundInterest { public static void main(String[] args) { double principle = 14000, rate = 10.20, time = 5; // finding java compound interest double compoundInterest = principle * (Math.pow((1 + rate / 100), time)); System.out.println("Compound Interest in java : " + compoundInterest); } }

**Output:**

Compound Interest in java : 22752.860716432457

##### conclusion

So this is all about simple interest java program and compound interest java program. I hope you guys have understood the concept.

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