For detailed explanation, please refer Reinvestment Deposit Scheme
The total interest receivable from compounding is calculated from the below formula
[ (1+(i÷n))t*n-1 ] * p
where,
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i - Rate of Interest(%)
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n - Number of times compounded in a year(period)
- Quarterly has 4 times compounding in a year, we have to compound the interest for every 3 months
- HalfYearly has 2 times compounding in a year, we have to compound the interest for every 6 months
- Monthly has 12 times compounding in a year, we have to compound the interest for every 12 months
- Yearly has 1 time compounding in a year, we have to compound the interest for every 1 month
-
t - Total number of periods(years)
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p - One time invested amount(currency)