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Certificate of Deposit Formula

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Certificate of Deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. Check FAQs

CD = P0 Deposit \cdot {(1 + (\frac{r Annual}{n c}))}^{n c \cdot n t}

CD - Certificate of Deposit?P0_Deposit - Initial Deposit Amount?r_Annual - Annual Nominal Interest Rate?n_c - Compounding Periods?n_t - Number of Years?

Certificate of Deposit Example

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With units

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Here is how the Certificate of Deposit equation looks like with Values.

Here is how the Certificate of Deposit equation looks like with Units.

Here is how the Certificate of Deposit equation looks like.

5389.1179 = 5000 \cdot {(1 + (\frac{0.015}{10}))}^{10 \cdot 5}

5389.1179 = 5000 \cdot {(1 + (\frac{0.015}{10}))}^{10 \cdot 5}

5389.1179 = 5000 \cdot {(1 + (\frac{0.015}{10}))}^{10 \cdot 5}

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Important Formulas of Investment » fx Certificate of Deposit

Certificate of Deposit Solution

Follow our step by step solution on how to calculate Certificate of Deposit?

FIRST Step Consider the formula

CD = P0 Deposit \cdot {(1 + (\frac{r Annual}{n c}))}^{n c \cdot n t}

Next Step Substitute values of Variables

∴

CD = 5000 \cdot {(1 + (\frac{0.015}{10}))}^{10 \cdot 5}

Next Step Prepare to Evaluate

∴

CD = 5000 \cdot {(1 + (\frac{0.015}{10}))}^{10 \cdot 5}

Next Step Evaluate

∴

CD = 5389.11791082906

LAST Step Rounding Answer

∴

CD = 5389.1179

Certificate of Deposit Formula Elements

Variables

Certificate of Deposit

Certificate of Deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements.

Symbol: CD

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Certificate of Deposit

Initial Deposit Amount

Initial Deposit Amount is the amount of money required to open a savings or investment account is called Initial Deposit Amount.

Symbol: P0_Deposit

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Initial Deposit Amount

Annual Nominal Interest Rate

Annual Nominal Interest Rate (in decimals) is the periodic interest rate multiplied by the number of periods per year.

Symbol: r_Annual

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annual Nominal Interest Rate

Compounding Periods

Compounding Periods is the number of times compounding will occur during a period.

Symbol: n_c

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Compounding Periods

Number of Years

The Number of Years is the total period for which the certificate of deposit is done.

Symbol: n_t

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Years

Other formulas in Important Formulas of Investment category

Go Compound Interest

FV = A \cdot {(1 + (\frac{i}{n}))}^{n \cdot T}

Go Capital Gains Yield

CGY = \frac{P c - P0}{P0}

Go Risk Premium

RP = ROI - Rf return

Go Total Stock Return

TSR = \frac{(P1 - P0) + D}{P0}

How to Evaluate Certificate of Deposit?

Certificate of Deposit evaluator uses Certificate of Deposit = Initial Deposit Amount*(1+(Annual Nominal Interest Rate/Compounding Periods))^(Compounding Periods*Number of Years) to evaluate the Certificate of Deposit, Certificate of Deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. Certificate of Deposit is denoted by CD symbol.

How to evaluate Certificate of Deposit using this online evaluator? To use this online evaluator for Certificate of Deposit, enter Initial Deposit Amount (P0_Deposit), Annual Nominal Interest Rate (r_Annual), Compounding Periods (n_c) & Number of Years (n_t) and hit the calculate button.

FAQs on Certificate of Deposit

What is the formula to find Certificate of Deposit?

The formula of Certificate of Deposit is expressed as Certificate of Deposit = Initial Deposit Amount*(1+(Annual Nominal Interest Rate/Compounding Periods))^(Compounding Periods*Number of Years). Here is an example- 5389.118 = 5000*(1+(0.015/10))^(10*5).

How to calculate Certificate of Deposit?

With Initial Deposit Amount (P0_Deposit), Annual Nominal Interest Rate (r_Annual), Compounding Periods (n_c) & Number of Years (n_t) we can find Certificate of Deposit using the formula - Certificate of Deposit = Initial Deposit Amount*(1+(Annual Nominal Interest Rate/Compounding Periods))^(Compounding Periods*Number of Years).

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Certificate of Deposit Formula

Certificate of Deposit Example

Certificate of Deposit Solution

Certificate of Deposit Formula Elements

Other formulas in Important Formulas of Investment category

How to Evaluate Certificate of Deposit?

FAQs on Certificate of Deposit

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