Single deposit
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Single deposit is one-time lump sum investment. The Investment is made at the start of the period; grows over the period and matures at the end of the period. Examples of a single deposit are certificates of deposit or Fixed Deposits.
Real World Example
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Ericka has US$5,000.00 for her daughter's wedding. She may need the money after 4 years. She is planning to invest the money for the period. Her bank offers her an interest rate of 3.50% per annum compounded annually on a new CD (certificate of deposit) that she opens.
Input
| Amount | Period | Interest Rate | Compounding |
|---|---|---|---|
| US$5,000.00 | 4 Year | 3.50% | Annually |
Returns
| Interest Accrued | Maturity Amount | Gain |
|---|---|---|
| US$737.62 | US$5,737.62 | 14.75% |
See also
[edit]References
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