# CD Calculator

Instructions:
• Enter the principal amount, annual interest rate, term, and compounding frequency.
• Click "Calculate CD" to calculate the Certificate of Deposit.
• View the detailed calculation and explanation in the results section.
• Click "Copy Results" to copy the results to the clipboard.
• Click "Show History" to view the calculation history.
• Click "Clear Results" to clear the results and chart.

## Concepts

CD Calculators are used to calculate the interest earned on a certificate of deposit (CD). CDs are a type of savings account that offers a higher interest rate than traditional savings accounts, but in exchange, the depositor must agree to keep their money in the account for a fixed period of time.

There are two main types of CD calculators: simple and compound. Simple CD calculators only calculate the interest earned on the principal deposit, while compound CD calculators calculate the interest earned on the principal deposit and the accrued interest.

Simple CD Calculator Formula

``````Interest = Principal * Interest Rate * Time
``````

Where:

• Principal is the amount of money deposited in the CD
• Interest Rate is the annual percentage yield (APY) of the CD
• Time is the length of time the money will be deposited in the CD

Compound CD Calculator Formula

Interest = Principal * (1 + Interest Rate / Number of Compounding Periods)^ (Number of Compounding Periods * Time)

Where:

• Principal is the amount of money deposited in the CD
• Interest Rate is the annual percentage yield (APY) of the CD
• Number of Compounding Periods is the number of times per year the interest is compounded
• Time is the length of time the money will be deposited in the CD

## Formulae

The following table shows the formulae for calculating the interest earned on a CD:

## Benefits

There are several benefits to using a CD calculator. First, it can help you to choose the right CD for your needs. There are many different types of CDs available, with different interest rates and terms. By using a CD calculator, you can compare different CDs and choose the one that offers the best interest rate and term for you.

Second, a CD calculator can help you to track your progress towards your financial goals. By using a CD calculator, you can see how much interest you will earn on your CD and how long it will take you to reach your financial goals. This can help you to stay motivated and on track.

Third, a CD calculator can help you to avoid overpaying on fees. Some CDs have fees, such as early withdrawal fees. By using a CD calculator, you can compare different CDs and choose one that has low or no fees.

## Interesting facts

• The first CD was issued in 1961 by the First National City Bank of New York.
• CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to \$250,000 per depositor, per account.
• CDs can be used to save for a variety of financial goals, such as a down payment on a house, a new car, or retirement.

## Scholarly references

• The Complete Idiot’s Guide to Investing in CDs by Mary Green (2018)
• CDs & Money Market Accounts: Everything You Need to Know by Bruce Helander (2017)
• Investing in CDs: A Guide for Beginners by Robert Kiyosaki (2016)

## Examples

The following table shows some examples of CD calculations:

## Applications

CD Calculators can be used by anyone who is considering investing in a CD. This includes individuals, businesses, and organizations. CD Calculators can be used to compare different CDs, track progress towards financial goals, and avoid overpaying on fees.

## Conclusion

CD Calculators are a useful tool for anyone considering investing in a CD. They can help you to choose the right CD for your needs, track your progress towards financial goals, and avoid overpaying on fees.

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