When you open an online FD or fixed deposit account, you invest a sum of money for a predetermined period at a fixed interest rate. You might be curious about how the interest on a fixed deposit is determined. There are two ways that interest rates on fixed deposits can be computed: simple interest and compound interest. The free FD calculator tool can also calculate the online FD maturity amount. Banks or NBFCs can use both of these procedures, depending on the size of the deposit and the length of time it is held.
formula of FD calculating FD return To determine the accurate returns on fixed deposits, you first need to decide whether you want the money you earn on the FD to be reinvested. You are contemplating cumulative returns if you use this particular approach to calculating returns. The following is the formula that can be used to calculate the returns on fixed deposits, or you can also calculate it by using the online FD Calculator tool A= P (1+(r/n) ^ n*t Here, A = "A" stands for the amount that you will receive upon maturity of the fixed deposit P = "P" stands for the principal amount that you have invested r = Rate of interest t = Number of days
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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