1. What is the FNB Investment Calculator?

The FNB Investment Calculator helps South African investors calculate the future value of their investments using compound interest principles. It's based on FNB's financial tools for investment planning and wealth management.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( FV \) — Future value (ZAR)
• \( P \) — Principal amount (ZAR)
• \( r \) — Annual interest rate (decimal)
• \( m \) — Compounding periods per year
• \( t \) — Time in years

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

3. Importance of Investment Planning

Details: Proper investment planning helps individuals achieve financial goals, build wealth, and secure their financial future through strategic compounding.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is compound interest?
A: Compound interest is interest calculated on both the initial principal and accumulated interest from previous periods.

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

Q3: What are typical compounding periods?
A: Common periods include annually (1), semi-annually (2), quarterly (4), monthly (12), and daily (365).

Q4: Is this calculator specific to South Africa?
A: Yes, it's designed for South African investors using FNB's investment principles and ZAR currency.

Q5: Can I use this for different types of investments?
A: This calculator works for any investment with fixed compound interest, including savings accounts, fixed deposits, and certain investment products.