CD Calculator

Calculate the maturity value of a Certificate of Deposit.

Formula & Methodology

Maturity value A = P(1 + r/n)^(nt) for a certificate of deposit with rate r compounded n times per year over t years.

Worked Example

$10,000 in a 2-year CD at 4.5% compounded monthly grows to about $10,940.

Frequently Asked Questions

What is a certificate of deposit?

A CD is a time deposit that pays a fixed rate for a set term. Withdrawing early usually triggers a penalty.

How is CD interest compounded?

Most CDs compound daily or monthly. More frequent compounding yields a slightly higher maturity value for the same nominal rate.

Is the CD rate guaranteed?

Fixed-rate CDs guarantee the stated rate for the full term. Variable-rate CDs can change with market conditions.

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