Single_deposit Knowpia

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 edit

Single Deposit Performance Chart based on Real World Example

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%

Summary

Real World Example edit

See also edit

References edit