compound_interest
Calculate compound interest for investments or loans using discrete or continuous compounding formulas. Input principal, rate, time, and frequency to compute future value.
Instructions
Calculate compound interest with various compounding frequencies.
Formulas: Discrete: A = P(1 + r/n)^(nt) Continuous: A = Pe^(rt)
Examples:
ANNUAL COMPOUNDING: £1000 at 5% for 10 years principal=1000, rate=0.05, time=10, frequency="annual" Result: £1628.89
MONTHLY COMPOUNDING: £1000 at 5% for 10 years principal=1000, rate=0.05, time=10, frequency="monthly" Result: £1647.01
CONTINUOUS COMPOUNDING: £1000 at 5% for 10 years principal=1000, rate=0.05, time=10, frequency="continuous" Result: £1648.72
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| context | No | Optional annotation to label this calculation (e.g., 'Bond A PV', 'Q2 revenue'). Appears in results for easy identification. | |
| output_mode | No | Output format: full (default), compact, minimal, value, or final. See batch_execute tool for details. | full |
| principal | Yes | Initial principal amount (e.g., 1000) | |
| rate | Yes | Annual interest rate (e.g., 0.05 for 5%) | |
| time | Yes | Time period in years (e.g., 10) | |
| frequency | No | Compounding frequency | annual |
Input Schema (JSON Schema)
{
"properties": {
"context": {
"anyOf": [
{
"type": "string"
},
{
"type": "null"
}
],
"default": null,
"description": "Optional annotation to label this calculation (e.g., 'Bond A PV', 'Q2 revenue'). Appears in results for easy identification."
},
"frequency": {
"default": "annual",
"description": "Compounding frequency",
"enum": [
"annual",
"semi-annual",
"quarterly",
"monthly",
"daily",
"continuous"
],
"type": "string"
},
"output_mode": {
"default": "full",
"description": "Output format: full (default), compact, minimal, value, or final. See batch_execute tool for details.",
"enum": [
"full",
"compact",
"minimal",
"value",
"final"
],
"type": "string"
},
"principal": {
"description": "Initial principal amount (e.g., 1000)",
"type": "number"
},
"rate": {
"description": "Annual interest rate (e.g., 0.05 for 5%)",
"type": "number"
},
"time": {
"description": "Time period in years (e.g., 10)",
"minimum": 0,
"type": "number"
}
},
"required": [
"rate",
"principal",
"time"
],
"type": "object"
}