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 = 19,293.00
r, Annual compound interest rate, r = 3.50%
n, Number of times the interest compounds during a year
Compound frequency: daily (360 times a year)
n = 360
r/n = 3.50%/360 = (3.50 ÷ 100)/360 = 3.50/(100 × 360)
r/n = 0.000097222222
t, Duration of the investment
n×t, Duration of the investment, related to n
n×t =
+ 1 year × 360 days / year
+ 7 months × 30 days / month
n×t = 570 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
19,293.00 × (1 + 0.000097222222)570 =
19,293.00 × 1.000097222222570 =
19,293.00 × 1.056978084348 ≈
20,392.28
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
20,392.28 - 19,293.00 ≈
1,099.28
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 19,293.00 |
1 | 30 | 56.35 | 56.35 | 19,349.35 |
2 | 30 | 56.52 | 112.87 | 19,405.87 |
3 | 30 | 56.68 | 169.55 | 19,462.55 |
4 | 30 | 56.85 | 226.39 | 19,519.39 |
5 | 30 | 57.01 | 283.40 | 19,576.40 |
6 | 30 | 57.18 | 340.58 | 19,633.58 |
7 | 30 | 57.35 | 397.93 | 19,690.93 |
8 | 30 | 57.51 | 455.44 | 19,748.44 |
9 | 30 | 57.68 | 513.12 | 19,806.12 |
10 | 30 | 57.85 | 570.97 | 19,863.97 |
11 | 30 | 58.02 | 628.99 | 19,921.99 |
12 | 30 | 58.19 | 687.18 | 19,980.18 |
13 | 30 | 58.36 | 745.53 | 20,038.53 |
14 | 30 | 58.53 | 804.06 | 20,097.06 |
15 | 30 | 58.70 | 862.76 | 20,155.76 |
16 | 30 | 58.87 | 921.63 | 20,214.63 |
17 | 30 | 59.04 | 980.68 | 20,273.68 |
18 | 30 | 59.21 | 1,039.89 | 20,332.89 |
19 | 30 | 59.39 | 1,099.28 | 20,392.28 |
Month | Days | Interest | Total interest | Balance |
Withdrawal Fee Amount, Fw. Financial gain, Pr
[5] The amount charged for withdrawing the money
Fw = Fw% × FV
Fw, Withdrawal Fee Amount
Fw%, Commission Fee % (on withdrawal), as a percentage
FV, Future Investment Value
Fw =
Fw% × FV =
1% × 20,392.28 =
1/100 × 20,392.28 =
(1 × 20,392.28)/100 =
20,392.28/100 =
20,392.28 ÷ 100 =
203.9228 ≈
203.92
[6] Financial gain, Pr:
Pr = CI - Fw
Pr, financial gain
CI, compound interest amount
Fw, Withdrawal Fee Amount
Pr =
CI - Fw =
1,099.28 - 203.92 =
895.36
Answer:
Principal (initial amount) = 19,293.00
Future Investment Value = 20,392.28
Compound interest amount = 1,099.28
Withdrawal Fee Amount = 203.92
Financial gain = 895.36