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How to calculate compounding interest and maturity value of recurring deposit. e.g. Mr A deposit $ 1000 per month in bank @ 5% p.a. for 5 years. Interest compound quarterly. How t0 calculate maturity value. Plzz guide..

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The annual nominal interest is 5% compounded quarterly: i = 0.05

so the quarterly interest q = i/4 = 0.0125

The annual effective interest a = (1 + q)^4 - 1 = 0.0509453

Monthly interest r = (1 + a)^(1/12) - 1 = 0.00414943

or in one step r = (1 + i/4)^(4/12) - 1 = 0.00414943

The maturity value s is the sum of the deposits with compounded interest

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(formula derived here)

So with d = 1000 and n = 60 months

s = (d (1 + r) ((1 + r)^n - 1))/r = 68252.23

The total interest is s - n d = 8252.23

Check

Confirming with the online calculator posted by C8H10N4O2.

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You want to look up the future value of a growing ordinary annuity, taking care to compound quarterly. See this online calculator.

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