**Introduction:** Welcome to our 3-Year CD Calculator, a useful tool for individuals interested in projecting the future value of their Certificate of Deposit investments over a 3-year period. A Certificate of Deposit is a low-risk financial instrument, and this calculator provides a quick estimate of its future worth based on the initial investment and annual interest rate.

**Formula:** The calculation is based on the compound interest formula: �=�×(1+�100)�*A*=*P*×(1+100*r*)*n*, where �*A* is the future value, �*P* is the principal amount (initial investment), �*r* is the annual interest rate, and �*n* is the number of years.

**How to Use:**

- Enter your initial investment in the designated field.
- Input the annual interest rate as a percentage.
- Click the “Calculate” button to obtain the estimated future value after 3 years.

**Example:** Suppose you invest $5,000 in a Certificate of Deposit with an annual interest rate of 3%. The calculator will estimate the future value of your investment after 3 years based on the provided information.

**FAQs:**

*Q: Can I use this calculator for monthly interest rates?*A: No, this calculator assumes an annual interest rate. For monthly rates, you may need to adjust the formula.*Q: What happens if I enter a negative value for the initial investment?*A: The calculator will prompt you to enter a valid positive value.*Q: Does the calculator consider compounding frequency?*A: No, it assumes simple annual compounding. For more complex compounding, consider using a financial calculator or software.*Q: Can I use this calculator for different time periods, like 5 or 10 years?*A: This calculator is specifically designed for a 3-year period. For different durations, you may use another calculator with appropriate adjustments.

**Conclusion:** Our 3-Year CD Calculator is a handy tool for individuals looking to assess the potential growth of their Certificate of Deposit investments. Use it to make informed decisions about your financial strategy and plan for future financial milestones.