Plz give me the formula for recurring deposit where interest is componded quarterly? - formula for recurring deposit interest calculator
It is the interest rate fixed or variable?
It is easier to do in an Excel spreadsheet. I have a send if you write to me through Yahoo Answers.
Tuesday, February 16, 2010
Formula For Recurring Deposit Interest Calculator Plz Give Me The Formula For Recurring Deposit Where Interest Is Componded Quarterly?
1 comment:
Well, this is the formula quite simple if the warehouse is the same in each quarter.
Value = PMT x ([(1 + i) ^ n - 1] / i)
Where:
PMT - Filing
I - Interest per quarter (ie if 12% per year, then it would be 12 / 4 = 3%)
N - Number of quarters (year / 4)
I think, an example illustrates the use of preparations
Suppose that a rate of 8% annual interest on deposits of $ 500 bought for 10 years.
Value = 500 x ([(1.02) ^ 40] - 1 / 0.2)
Value = 500 x () 60.40
Value = $ 30,201
In 10 years, quarterly deposits of $ 500, with interest at a rate of 8% per year, the quarterly capitalization could be worth $ 30,201. (Note: This is to ignore the effects of inflation.)
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