FD calculator

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FD Calculator
Powered by www.fdcalculators.com
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Contents

• Introduction
• About FD Calculator
• How to Use FD Calculator

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Introduction

• FD Calculator is mainly used to calculate your
  Fixed Deposit Maturity amount.
• By using this calculator, you can know your Fixed
  Deposit money interest rates and maturity amount
  details.
• The maturity amount of FD depends on the
  compound interest and simple interest.

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About FD Calculator

• Fd calculator is the only one to check your
  maturity amount and interest rates before
  depositing. 
• Banks are offering higher returns on Fixed
  deposit savings.
• It will help you to understand the break-up and
  returns of your investments.
• The individuals can replace his/her Fixed deposit
  amount as usual savings.

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• Fixed Deposits are safer than the post office
  schemes.
•  FDs are increasing day by day, and today it is
  more popular among all the savings.
• There are many advantages and benefits for Fixed
  depositing.
• For fixed deposit the money in banks there are
  some terms and conditions. So, you have to agree
  with that conditions.

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How to Use FD Calculator

• The interest of your amount depends on the
  duration period.
• The duration period is of 4 types. They are
  monthly, quarterly, half-yearly, and annually.
• You can calculate your returning amount by simple
  interest and compound interest.
• Before calculating the maturity amount, you have
  to know about simple interest and compound
  interest.

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Compound Interest

• The formula used to calculate the maturity amount
  is A P(1r/n)nt
• Where
• A Final Amount that will be received.
• r Annual nominal interest rate as a decimal
  that is if the interest is paid for 5.5. Then it
  will be 0.055.
• P Principal Amount of Initial Investment.
• n Number of times the interest is compounded
  per year.
• t Number of years.

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• If the monthly compound is 12, then the half year
  compound is 2 and the quarter are 4.
• For example
• Let us take an amount of Rs.1500 and deposit in a
  bank for 6 years, and the annual interest rate is
  4.3
• Assume that
• P 1500
•  r 4.3/100 0.043
•  n 4
•  t 6

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• A P(1r/n)nt
• Substitute the given values in the above formula.
• A 1500 (10.043/4)46 1938.84.
• Hence the balance after 6 years is Rs.1,938.84 or
  Rs.1939.
• To know the interest amount use the formula
  A P

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• Where
• A 1938.84 
• P 1500
• Substitute the values in the formula
• A P 1938.84 1500
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• 438.84

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• Rs.1,00,000 10 Rs.10,000 for one year.
• (Rs.1,00,000 Rs.10,000)10 for 2 years.
• Rs.1,10,00010 Rs.11,000.
• Rs.1,10,000 Rs.10,000 10 Rs.1,21,00010
  Rs.33,100.
• The total interest of the FD received at the end
  of 3 years is Rs.33,100.
• For maturity level the payment at the end of the
  5 years is Rs.1,00,000Rs.33,100   Rs.1,3,100

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Simple Interest

• Rs.1,00,000 10 Rs.10,000 for the duration of
  1 year.
• For 2 years the simple  interest is Rs.1,00,000
  10 Rs.10,000.
• Rs.1,00,000 10 Rs.10,000 for the time period
  of 3 years.
• At the end of the 3 years, the total earned
  interest is Rs.30,000. To calculate the interest
  of half-yearly the rate is considered as 106
  months out of 12 months 5.
• For quarterly, the interest rate is considered as
  10 3 months out of 12 months 2.5.

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Thank You

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