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 = 2,559.04
r, Annual compound interest rate, r = 25.00%
n, Number of times the interest compounds during a year
Compound frequency: daily (360 times a year)
n = 360
r/n = 25.00%/360 = (25.00 ÷ 100)/360 = 25.00/(100 × 360)
r/n = 0.000694444444
t, Duration of the investment
n×t, Duration of the investment, related to n
n×t =
+ 6 months × 30 days / month
+ 23 days
n×t = 203 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
2,559.04 × (1 + 0.000694444444)203 =
2,559.04 × 1.000694444444203 =
2,559.04 × 1.151336332603 ≈
2,946.32
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
2,946.32 - 2,559.04 ≈
387.28
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 2,559.04 |
1 | 30 | 53.85 | 53.85 | 2,612.89 |
2 | 30 | 54.99 | 108.84 | 2,667.88 |
3 | 30 | 56.14 | 164.98 | 2,724.02 |
4 | 30 | 57.33 | 222.31 | 2,781.35 |
5 | 30 | 58.53 | 280.84 | 2,839.88 |
6 | 30 | 59.76 | 340.61 | 2,899.65 |
7 | 23 | 46.67 | 387.28 | 2,946.32 |
Month | Days | Interest | Total interest | Balance |
Answer:
Principal (initial amount) = 2,559.04
Future Investment Value = 2,946.32
Compound interest amount = 387.28