Compound Interest Formula With Deposits On Recurring Deposit Account
Do you want to save for a future date? The compound interest formula with deposits
on a recurring deposit account can help you have an advantage! The compound interest formula with deposits is made for those who are enrolled or would like to be enrolled in a recurring deposit account. It is an account wherein you will be able to save and get the profit from it on a certain date with a good interest rate on the accounts maturity. If you are saving for a wedding day, an expensive vehicle, pricey home appliances, or just simply want to earn big through saving, then the compound interest formula with deposits will help you know how much youll get when your account matures!
Here is the Compound Interest Formula with Deposits on Recurring Deposit Account with Quarterly Compounding.
A =I [(1+r) q 1]
1- (1+r) -1/3
Compound interest formula with deposits is as follows:
A is the Maturity value of the recurring deposit account.
I is the cash value of your fixed monthly deposits.
q is the number of how many quarters or how many four-time a year compounding of the interest happened.
r is the rate of interest that is automatically divided over 400.
What is the importance of compound interest formula with deposits in recurring deposit account?
The core purpose of having a recurring deposit account with compound interest formula with deposits is to be able to save and make it a routine especially with whats happening in the economy today. Usually, the accounts time period has the minimum of six months. For those, who want to save more than six months, they are given up to ten years to deposit in the recurring deposit account. The deposits are fixed amount of money that are made monthly in the account. You shall be able to know more about the importance of it through the compound interest formula with deposits.
The rate of interest in the recurring deposit account is also relatively higher than most savings accounts. You can compute and compare using compound interest formula that is present in the compound interest formula with deposits. However, you will not be able to withdraw money from the recurring deposit account. The goal here is to deposit cash or simply save as your monthly routine. Therefore, you will only be allowed to get your profit after some time. It is only when your recurring deposit account reached its maturity. Using the compound interest formula with deposits will help you see that it is still a good thing in order to have really good profits from your savings.