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 = 184.00
r, Annual compound interest rate, r = 23.00%
n, Number of times the interest compounds during a year
Compound frequency: daily (360 times a year)
n = 360
r/n = 23.00%/360 = (23.00 ÷ 100)/360 = 23.00/(100 × 360)
r/n = 0.000638888889
t, Duration of the investment
n×t, Duration of the investment, related to n
n×t =
+ 12 days
n×t = 12 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
184.00 × (1 + 0.000638888889)12 =
184.00 × 1.00063888888912 =
184.00 × 1.007693663937 ≈
185.42
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
185.42 - 184.00 ≈
1.42
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 184.00 |
1 | 12 | 1.42 | 1.42 | 185.42 |
Month | Days | Interest | Total interest | Balance |
Answer: