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CD


Usage:CD Investment, Term, Rate

The CD command will calculate the future value of a lump-sum investment, that is, a one-time deposit into an investment with no periodic additions. Interest is compounded daily.

Investment is the lump-sum amount being invested.

Term, or period, is entered in months. For example, a 5-year loan would be 60 months.

Rate is the rate of interest and is entered as an annual percent. This is the simple interest rate, not the Annual Percentage Rate or APR. For example, if the interest rate is 6 1/4 percent per year, it would be entered as 6.25, not as .0625. Do not enter the percent (%) symbol.

Note that CD is a special case of the FV (future value) command where the periodic payment is 0 and the lump-sum amount is the PV with the timing being at the end of the period. Contrast CD 1000, 12, 4.25 with FV 0, 12, 4.25, 1000. The difference is due to CD compounding interest daily while FV compounds interest monthly.

Examples:
CD 1000, 12, 4.25.


 Try It   
 Enter the monthly investment:  
 Enter the term in months:  
 Enter the yearly interest rate as a percent (eg. 4.25):