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?
Friday, January 15, 2010
Recurring Deposit Interest Calculation Formula Interest Calculation Method For Recuirring Deposit Accounts(is There Any Formula ?)?
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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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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
------
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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