Most CDs compound interest daily, so n = 365. Check with your bank to verify the interest is compounded daily. t is time or the number of periods until the maturity date.

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There is simple interest, which, as the name implies, is the simpler form of interest to understand and calculate, and then there is compound interest.

How To Calculate CD Interest CDs earn compound interest, making them attractive to risk-averse investors. Compounding means that CDs earn interest periodically, according to whatever compounding ...