Formula for calculating interest in Recurring deposit? - formula to calculate recurring deposit interest
If I were a one-time payment of $ xx.xx each year in the AA and the filing of the complainant to pay interest annually to strengthen how do I calculate the interest rate?
How to calculate interest on deposits paid (s)?
What is the formula for the calculation?
Saturday, January 23, 2010
Formula To Calculate Recurring Deposit Interest Formula For Calculating Interest In Recurring Deposit?
4 comments:
Sum + = P (P (n +1) * r/2400)
where P is the monthly payment, n is the number of months, r the interest rate
DIAL 800 # ask to speak to a representative. And it explains all ..... Easy for you.
Formula to calculate the current filing, I hope this helps ..
A (N) = A [C (N +1.1) + C (N +1.2) * R + C (N +1.3) * r ^ ...
..............................[ Equatio ... 1]
where
A (N) indicates the amount repayable at maturity n in the time period N =
a is the annual filing ($ 10,000)
r is the annual interest rate and
C (M, Y) is defined as m! / [(MJ)! * J].
Let me say that it is not a simple equation to solve without a computer, because it is a polynomial of high order terms in r are known. "
The solution I came with a package of mathematics is about 7.19%.
The mathematical symbol m, is called "m factorial. It is the product of numbers from m to 1 told Specifically, given by m * (m-1) * (m-2 )*....* 2, * 1 .
Faculty of zero (0!) Just 1 is by definition.
The terms C (M, Y) = m! / [(MJ)! J *] If the coefficients of the polynomial in "s".
For example, C (N +1.3) = (N +1 )!/[( N 1-3)! * 3!]
= (N +1) * (N) * (N-1) * (N-2) * (N-3 )...* 2 * 1 / [(... * 3 * 2 * 1]
= (N +1) * (N) * (N-1) / [3 * 2 * 1] for simplification.
Note: The formula is based on the observation that the trend is clear from the following derivation is based.
A (0) = a,
One (1) = a (1 + r)
A (2) = (a (1 + r) + a) (1 + r) = a (2 + r) (1 + r) = a (2 3 ...
A (3) = [A (2) + a] (1 + r) = a (3 +3 r + r ^ 2) (1 + r) = a (...
A (4) = [A (3) + a] (1 + r) ... and so on.
Note: Formula-1 may be used only as a guide. Looking for professional advice from a qualified financial advisor before making any investment decision.
The exact formula for the total balance after years and assuming X amount has been deposited at the beginning of each of these years and that is:
A = X * (1 + r) * ((1 + r) ^ Y-1) / r
where r is the interest rate down. (The expressions of Kae and certain values are correct, but) the general formula.
The total amount is deposited with XY, so that the total interest paid:
I = A - XY
= X * (1 + r) * ((1 + r) ^ Y-1) / R - XY
*****
To use a concrete example, is deposited $ 1000 for the beginning of each year for 10 years at an interest rate of 5%. The balance and total interest paid as follows:
A 1000 = * (1.05) (1.05 ^ 10-1) / (.05) = $ 13,206.79
I = $ 13,206.79 - $ 10,000 = $ 3206.79
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To see the formula above, where it comes from, note that the total amount is now due to years prior to separation k X: X ^ k * u where u = (1 + r). Thus, the total is still this year and is the sum of a geometric series:
A = X * [+ uu ^ 2 + u ^ 3 +...+ n ^ Y] = X * [(u ^ (y +1)-u) / (U-1)]
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