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How does one calculate FD maturity amount using home calculator ?
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Fixed Deposits
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Asked by Abhinav -
1 year ago
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Best Answer:
This answer applies to home calculators and not to software calculators available on PC.
Eg. To compute maturity amount for Rs 100 for 1 year at 9% rate of interest compounded quarterly, this is what you do.
1. Divide 409/400.
( 4 is the times you will apply this formula in 1 year and
9 is the rate of interest ).
2. The result you will get is 1.0225. Then press x ( multiplication key ) two times. This will show a x and k on the top of the calculator.
3. Then type the amount 100.
4. Then press = key four times.
5. The result 109.30 is the maturity amount.
Note: Applying the same technique, to compute 8% interest compounded two times a year, use 208/200 and then in step 4, press = two times to get the result. ( HINT this is the formula what NSC uses. For that you will have to type = 12 times for 6 years and get your NSC maturity amount )
1 year ago - By Asheesh Joshi
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