Friday, January 15, 2010

Recurring Deposit Interest Calculation Formula Interest Calculation Method For Recuirring Deposit Accounts(is There Any Formula ?)?

Interest calculation method for recuirring deposit accounts(is there any formula ?)? - recurring deposit interest calculation formula

Suppose that A has opened a depot for 5 years, is repeated in a bank
January 2007
Monthly Rs.1400 / - pm
@ 8% interest year, PR
What is the interest accrued for the period March 2008 to February 2009?

3 comments:

Anonymous said...

Period January 2007 to February 09 = 38 months
A is the amount that after 38 months.
Monthly interest rate = 8 / 1200 = 0.0067
A 1400 + 1400 = (1.0067) + 1400 (1.0067) ^ 2 + ... 1400 (1.0067) is multiplied by 37 ^ (1.0067)
(1.0067) A = 1400 (1.0067) + 1400 (1.0067) ^ 2 + 1400 (1.0067) ^ 3 + ... 1400 (1.0067) ^ 38
(1.0067) A - A = 1400 (1.0067) ^ 38-1400
0.0067A = 1400 [(1.0067) ^ 84-1]
A-1400 = [(1.0067) ^ 84-1] / (0.0067)
A = 1400 × 0.75229/0.0067
A = 157,165
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Anonymous said...

Period January 2007 to February 09 = 38 months
A is the amount that after 38 months.
Monthly interest rate = 8 / 1200 = 0.0067
A 1400 + 1400 = (1.0067) + 1400 (1.0067) ^ 2 + ... 1400 (1.0067) is multiplied by 37 ^ (1.0067)
(1.0067) A = 1400 (1.0067) + 1400 (1.0067) ^ 2 + 1400 (1.0067) ^ 3 + ... 1400 (1.0067) ^ 38
(1.0067) A - A = 1400 (1.0067) ^ 38-1400
0.0067A = 1400 [(1.0067) ^ 84-1]
A-1400 = [(1.0067) ^ 84-1] / (0.0067)
A = 1400 × 0.75229/0.0067
A = 157,165
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Anonymous said...

Period January 2007 to February 09 = 38 months
A is the amount that after 38 months.
Monthly interest rate = 8 / 1200 = 0.0067
A 1400 + 1400 = (1.0067) + 1400 (1.0067) ^ 2 + ... 1400 (1.0067) is multiplied by 37 ^ (1.0067)
(1.0067) A = 1400 (1.0067) + 1400 (1.0067) ^ 2 + 1400 (1.0067) ^ 3 + ... 1400 (1.0067) ^ 38
(1.0067) A - A = 1400 (1.0067) ^ 38-1400
0.0067A = 1400 [(1.0067) ^ 84-1]
A-1400 = [(1.0067) ^ 84-1] / (0.0067)
A = 1400 × 0.75229/0.0067
A = 157,165
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