Compound interest

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,

• i - Rate of Interest(%)

• 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)

• p - One time invested amount(currency)