Banking
Maturity value
The standard compound interest formula with interest added n times a year for t years.
The Formula
Maturity = P x (1 + r / n)^(n x t)
The standard compound interest formula with interest added n times a year for t years.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| P | Principal | currency | Amount placed on deposit. |
| r | Annual rate | rate | Quoted nominal rate as a decimal. |
| n | Periods per year | count | Compounding frequency. |
| t | Years | years | Tenure of the deposit. |
What Each Symbol Means
Pcurrency
Principal
Amount placed on deposit.
rrate
Annual rate
Quoted nominal rate as a decimal.
ncount
Periods per year
Compounding frequency.
tyears
Years
Tenure of the deposit.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate fd maturity page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate FD Maturity, filed under Finance. Every number the guide produces comes from substituting into this one line.