Question: how to calculate compound interest on recurring deposit?
Answer: Factors Affecting RD Interest Rates. Banks or financial institutions use the following formula to calculate Interest on Recurring Deposit or maturity value of RD (suggested by Indian Bank Association) M = R [(1+i)n – 1] divided by 1-(1+i)(-1/3) M here stands for Maturity value of the RD. ...  A = P (1 + r/n) ^ nt.