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https://issues.apache.org/jira/browse/FINERACT-1964?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=17815058#comment-17815058
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Uddyan Goyal edited comment on FINERACT-1964 at 2/7/24 2:32 AM:
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Hello [~bgowda] ji,
What formula are we using to calculate maturity amount?
I used this formula (Src- [ICICI bank's
website|https://www.icicihfc.com/knowledge-hub/know-how-fixed-deposit-interest-rate-is-calculated]
):
Maturity amount = P* ((1+ r/n) ^nt)){*}{*}
Where -
*A* denotes the future valuation of the investment made
*P* denotes the Principal amount
*r* denotes the interest rate
*n* denotes the number of times interest gets compounded per period
*t* denotes the time period the money was invested for
But by using this formula (10000*(1+(0.05/12))^12) I am getting a maturity
amount of 10,511.6 and not 10,512.5
Please suggest.
was (Author: JIRAUSER303958):
Hello [~bgowda] ji,
What formula are we using to calculate maturity amount?
I used this formula (Src- [ICICI bank's
website|https://www.icicihfc.com/knowledge-hub/know-how-fixed-deposit-interest-rate-is-calculated]
):
Maturity amount = P* ((1+ r/n) ^nt){*}{*}
Where -
*A* denotes the future valuation of the investment made
*P* denotes the Principal amount
*r* denotes the interest rate
*n* denotes the number of times interest gets compounded per period
*t* denotes the time period the money was invested for
But by using this formula (10000*(1+(0.05/12))^12) I am getting a maturity
amount of 10,511.6 and not 10,512.5
Please suggest.
> Fixed Deposit Enhancement- calculcate Interest during the FD creation phase
> ----------------------------------------------------------------------------
>
> Key: FINERACT-1964
> URL: https://issues.apache.org/jira/browse/FINERACT-1964
> Project: Apache Fineract
> Issue Type: Improvement
> Reporter: Bharath Gowda
> Priority: Major
>
> *As a* user
> *I want system* to calculate the interest of the Fixed deposit account before
> the account creation
> *in order to* give flexibility to the customers to know their liability
> before account creation
> h4. *Background and details:*
> Need to add a new capability to calculate *interest for fixed deposit
> savings* based on the interest posting period and interest compounding period
> before the creation of the fixed deposit saving.
> This enhancement will empower the customers to have a comprehensive preview
> of the interest that will be accrued at the maturity of their fixed deposit
> savings, enabling them to make informed decisions.
> To achieve this,an API endpoint is required that can perform the interest
> calculation for fixed deposit savings. The API endpoint should accept
> parameters such as the {*}principal amount, interest rate, tenure, interest
> posting period, and interest compounding period{*}. Upon receiving these
> inputs through a POST request, the endpoint should conduct the necessary
> calculations and return the maturity amount and interest earned in the
> response.
> UI button “{*}calculate Interest{*}” should be available on create fixed
> deposit account view screen for users to know the interest after entering all
> the parameteres
>
> Ex API:
> *POST* /api/calculate-fixed-deposit-interest
> *Request Body:*
> {
> "principal_amount": 10000, // The initial amount deposited
> "interest_rate": 5, // Annual interest rate (in percentage)
> "tenure": 12, // Number of months for which the FD is held
> "interest_posting_period": 3, // Posting period of interest (in months)
> "interest_compounding_period": 1 // Compounding period of interest (in
> months)
> }{*}Response Body:{*}
> {
> "maturity_amount": 10512.5, // Total amount at maturity (including interest)
> "interest_earned": 512.5 // Interest earned during the tenure
> }
> *Acceptance criteria*
> # I want to be able to calculate the interest on Fixed deposit during
> account creation phase
> # a button should be available on the UI for users to calculate and show the
> interest based on the parameters entered ({*}principal amount, interest rate,
> tenure, interest posting period, and interest compounding period{*})
>
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