 | This article does not cite any sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Single deposit" – news · newspapers · books · scholar · JSTOR (July 2018) (Learn how and when to remove this message) |
Single deposit is one-time lump sum investment. The Investment is made at the start of the period; grows over the period and matures at the end of the period. Examples of a single deposit are certificates of deposit or Fixed Deposits.
Real World Example
Ericka has US$5,000.00 for her daughter's wedding. She may need the money after 4 years. She is planning to invest the money for the period. Her bank offers her an interest rate of 3.50% per annum compounded annually on a new CD (certificate of deposit) that she opens.
Input
| Amount | Period | Interest Rate | Compounding |
|---|---|---|---|
| US$5,000.00 | 4 Year | 3.50% | Annually |
Returns
| Interest Accrued | Maturity Amount | Gain |
|---|---|---|
| US$737.62 | US$5,737.62 | 14.75% |
See also
References
 | This finance-related article is a stub. You can help Misplaced Pages by expanding it. |