# Java Interest Rate Program

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.

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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