Calculation formula. Used notations. Project Breakdown.
[1] Calculation method used: 30 / 360
Number of days in a month = 30
Number of days in a year = 360
[2] Future Investment Value, FV
Calculation formula:
FV =
P × (1 + r/n)n×t
FV, Future Investment Value
P, Principal (initial amount), P = 100.00
r, Annual compound interest rate, r = 0.30%
n, Number of times the interest compounds during a year
Compound frequency: daily (360 times a year)
n = 360
r/n = 0.30%/360 = (0.30 ÷ 100)/360 = 0.30/(100 × 360)
r/n = 0.000008333333
t, Duration of the investment
n×t, Duration of the investment, related to n
n×t =
+ 6 months × 30 days / month
+ 1 day
n×t = 181 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
100.00 × (1 + 0.000008333333)181 =
100.00 × 1.000008333333181 =
100.00 × 1.001509465086 ≈
100.15
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
100.15 - 100.00 ≈
0.15
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 100.00 |
1 | 30 | 0.03 | 0.03 | 100.03 |
2 | 30 | 0.03 | 0.05 | 100.05 |
3 | 30 | 0.03 | 0.08 | 100.08 |
4 | 30 | 0.03 | 0.10 | 100.10 |
5 | 30 | 0.03 | 0.13 | 100.13 |
6 | 30 | 0.03 | 0.15 | 100.15 |
7 | 1 | 0.00 | 0.15 | 100.15 |
Month | Days | Interest | Total interest | Balance |
Answer: