Understanding the WAFD CD Rates Calculator
This WAFD CD Rates Calculator is designed to help you estimate the potential growth of your investment in a Certificate of Deposit (CD) offered by WAFD Bank. A Certificate of Deposit is a type of savings account that holds a fixed amount of money for a fixed period of time, in exchange for a fixed interest rate. This fixed rate typically offers a higher return than a standard savings account, but with less liquidity.
How it Works:
The calculator takes into account three key pieces of information:
- Initial Deposit: This is the principal amount you intend to invest in the CD.
- Annual Percentage Rate (APR): This is the yearly interest rate that the CD will earn. It's important to note that APR is the rate before considering compounding.
- Term (in Years): This is the duration for which your money will be locked in the CD account.
The Calculation:
The calculator uses the compound interest formula to project your earnings. Assuming annual compounding for simplicity, the formula is:
Future Value = P (1 + r/n)^(nt)
Where:
- P = Principal amount (Initial Deposit)
- r = Annual interest rate (APR as a decimal)
- n = Number of times that interest is compounded per year (for this calculator, we assume n=1 for annual compounding)
- t = Number of years the money is invested for (Term in Years)
The calculator will then display the total future value and the total interest earned.
Example:
Let's say you have an initial deposit of $10,000. You find a WAFD CD with an Annual Percentage Rate (APR) of 4.5% and a term of 5 years.
Using the calculator with these inputs:
- Initial Deposit: 10000
- Annual Percentage Rate (APR): 4.5
- Term (in Years): 5
The calculator would estimate your future value and the total interest earned over the 5-year period.
Disclaimer: This calculator provides an estimation based on the provided inputs and the assumption of annual compounding. Actual returns may vary based on WAFD Bank's specific CD terms and conditions, including any fees or variations in compounding frequency. It is always recommended to consult with WAFD Bank directly for the most accurate information.
function calculateWafdCdRates() {
var initialDeposit = parseFloat(document.getElementById("initialDeposit").value);
var annualPercentageRate = parseFloat(document.getElementById("annualPercentageRate").value);
var termInYears = parseFloat(document.getElementById("termInYears").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(initialDeposit) || isNaN(annualPercentageRate) || isNaN(termInYears) || initialDeposit <= 0 || annualPercentageRate < 0 || termInYears <= 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
return;
}
// Convert APR to decimal
var rateDecimal = annualPercentageRate / 100;
// Assuming annual compounding (n=1)
var n = 1;
// Calculate future value using compound interest formula
var futureValue = initialDeposit * Math.pow((1 + rateDecimal / n), (n * termInYears));
// Calculate total interest earned
var totalInterestEarned = futureValue – initialDeposit;
resultDiv.innerHTML = `
Calculation Results:
Initial Deposit: $${initialDeposit.toFixed(2)}
Annual Percentage Rate (APR): ${annualPercentageRate.toFixed(2)}%
Term: ${termInYears} years
Estimated Future Value: $${futureValue.toFixed(2)}
Total Interest Earned: $${totalInterestEarned.toFixed(2)}
`;
}
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