1. What is the Marcus CD Calculator?

The Marcus CD Calculator helps investors calculate the maturity amount of a Certificate of Deposit (CD) investment using the compound interest formula. It provides an accurate projection of investment growth over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Maturity amount (USD)
• \( P \) — Principal investment amount (USD)
• \( R \) — Annual interest rate (decimal)
• \( n \) — Compounding frequency per year
• \( T \) — Time in years

Explanation: The formula calculates how an initial investment grows over time with compound interest, accounting for how often interest is compounded.

3. Importance of CD Investment Calculation

Details: Accurate CD maturity calculation is crucial for financial planning, comparing investment options, and understanding the true growth potential of your savings.

4. Using the Calculator

Tips: Enter principal in USD, annual interest rate as a decimal (e.g., 0.05 for 5%), compounding frequency (typically 12 for monthly), and time in years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What is a Marcus CD?
A: Marcus by Goldman Sachs offers high-yield Certificates of Deposit with competitive interest rates and various term options.

Q2: How does compounding frequency affect returns?
A: More frequent compounding (e.g., monthly vs. annually) results in higher returns due to interest earning interest more often.

Q3: Are CD investments FDIC insured?
A: Yes, Marcus CDs are FDIC insured up to $250,000 per depositor, making them a safe investment option.

Q4: What are the typical CD term options?
A: Marcus offers CD terms ranging from 6 months to 6 years, allowing investors to choose based on their financial goals.

Q5: Are there penalties for early withdrawal?
A: Yes, most CDs including Marcus CDs charge early withdrawal penalties, which vary based on the term length.