Fd calculator ppt
- 1. FD Calculator Powered by www.fdcalculators.com
- 2. Contents Introduction About FD Calculator How to Use FD Calculator powered by www.fdcalculators.com
- 3. 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. powered by www.fdcalculators.com
- 4. 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. powered by www.fdcalculators.com
- 5. Fixed Deposits are safer than the post office schemes. FD’s 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. powered by www.fdcalculators.com
- 6. 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. powered by www.fdcalculators.com
- 7. Compound Interest The formula used to calculate the maturity amount is A = P(1+r/n)n*t 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. powered by www.fdcalculators.com
- 8. 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 powered by www.fdcalculators.com
- 9. A = P(1+r/n)n*t Substitute the given values in the above formula. A = 1500 (1+0.043/4)4*6 = 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 powered by www.fdcalculators.com
- 10. Where A = 1938.84 P = 1500 Substitute the values in the formula A – P = 1938.84 – 1500 = 438.84 powered by www.fdcalculators.com
- 11. Rs.1,00,000 * 10% = Rs.10,000 for one year. (Rs.1,00,000 +Rs.10,000)*10 % for 2 years. Rs.1,10,000*10% = Rs.11,000. Rs.1,10,000 + Rs.10,000 * 10% = Rs.1,21,000*10% = 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.1,00,000+Rs.33,100 = Rs.1,3,100 powered by www.fdcalculators.com
- 12. 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 10%*6 months out of 12 months = 5%. For quarterly, the interest rate is considered as 10% * 3 months out of 12 months = 2.5%. powered by www.fdcalculators.com
- 13. Thank You For more details www.fdcalculators.com powered by www.fdcalculators.com