If you deposit a specific amount for a fixed period in a Bank, this type of deposit called Fixed Deposit. Bank gives good interest on FD.

**A = P x (1 + r/n)nt ****I = A - P**

**Where,**

A = Maturity Value (Principle + interest)

P = Principal zAmount

r = Rate of Interest

t = Number of Period

n = Compounded Interest Frequency

I = Interest Earned Amount

Bank could be compound interest yearly, half-yearly or quarterly.

if Compounded annually, then n = 1

if Compounded half-yearly, then n = 2

if Compounded quarterly, then n = 4

if Compounded monthly, then n = 12

if A deposite $5000 for 5 years and paying an annual interest rate is 8%, compounded annualy.

**we have:**

P = 5000

r = 8% = 8/100 = 0.08

t = 5

n = 1

**As per formula :****A** = P x (1 + r/n)^{nt}

a= 5000 x (1 + 0.08/1)^{1x5}

**Maturity Value(A)** = 7346

**Interest = A-P**

7346-5000 = 2346