Linear Model to Predict Compound Interest | Overview

Jun 10, 2025

Compound Interest Calculator

High-Accuracy Financial Prediction Model

Compound interest is exponential in nature and very hard to precisely calculate without calculators. So I developed a mathematical model to approximate compound interest. It uses a piecewise quadratic approach to replace complex exponential formulas with simple arithmetic. Validation shows impressive results: <1% error across the target spectrum of interest rates and time duration.

  • Tech Stack: Python, NumPy, Pandas, Matplotlib
  • Key Results: 0.74% average error rate across 3-15% interest rates