##### Definition:

A type of savings given by banks for certain period of time where, customers can get high interst rate for their investment is fixed deposit(FD).

#### Formula

A = P x (1 + r/n)^{nt}
I = A - P
** Where, **
A = Maturity Value
P = Principal Amount
r = Rate of Interest
t = Number of Period
n = Compounded Interest Frequency
I = Interest Earned Amount
##### Example

Principal amount is 4000, interest rate is 3%, number of period is 10 months and pay frequency is Annually. Find the fixed deposit interest earned and maturity value.

##### Given

P = 4000
r = 3/100 = 0.03
t = 10 months
n = Annually (1)

##### To find

Interest Earned (I)
Maturity Value (A)

##### Solution

A = P x (1 + r/n)^{nt}
A = 4000 x (1 + 0.03/1)^{1*(10/12)}
A = 4099.75

I = A - P
I = 4099 - 4000
I = 99.75
Interest Earned on FD is 99.75 and maturity value is 4099.75