bank interest rate,
deposit term (in years),
the final amount of savings.
To raise to a power, use the (x y ) function in an philippines country code mobile number engineering calculator . If you are using a regular calculator, you need to multiply the sum in brackets (1+n/100) by itself (T-1) times.
This formula is useful for calculating long. If you are dealing with any other program, the formula will be a little more complicated:
Roman and Marina used the formula and calculated:
initial contribution D = 500,000 rubles;
interest rate of the bank "Profitable" n = 6.6%;
capitalization of interest is annual, which means L = 1;
deposit term T = 20, newlyweds expect to close the deposit in 20 years.
As a result, Roman and Marina received:
S = 500,000 * (1 + 6.6 / 100 / 1) 20 = 1,795,205 rubles
Thus, in twenty years, passive income will increase capital by more than 3.5 times.
Fact of the day
The word "money" comes from the Turkic "tenge". It began to be used under Dmitry Donskoy in the 14th century.
Another fact
Advantages and disadvantages
Like any financial instrument, a deposit with interest capitalization has its pros and cons.
The advantages of such deposits include: