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A sum of Rs 500 deposited in a bank which pays interest at the rate of 6 percent compounded semi anually. What will be the value of the deposit in 18 months? please give answer with solution
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Fixed deposit calculations can be done by both manual and automatic methods.Now let us figure out the fd calculation in both ways: 1.) Manual Calculation Technique: It is the conventional process to know your Fixed deposit interest calculation. The formula for manual fd calculation is used as below:
Where,A = Final Amount
P = Principal Amount (initial investment)
r = Annual Nominal Interest Rate (as a decimal, not in percentage)
n = Number of times the interest is compounded per year
t = Number of years
2.) Online Calculator Technique: Nowadays online FD calculator is very amazing technique and it is a very useful online tool that helps you to easily calculate your Fixed deposit return. Online FD calculators uses simple technique in which you need to put your amount, tenure, interest rate and can get accurate results instantly. You can easily calculate and compare the interest receivable by changing the deposit amount.
If the bank truly pays 14% quarterly (which works out to about 69% annually) then the final amount is about 2,604,159 .
If the bank actually pays 14% annually compounded quarterly then the final amount is about 534,766 .
Without knowing what make and model camera (or calculator) you're using, I can't give you the exact sequence to calculate these values.
Recurring deposit interest is calculation may vary depends on compounding period. You have to invest an amount every month interest will be calculated for the current holding in your recurring deposit account. And every compounding period interest amount will be added into holdings or available balance. You can calculate the Recurring deposit using this recurring deposit calculator
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