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 = 714.00
r, Annual compound interest rate, r = 3.00%
n, Number of times the interest compounds during a year
Compound frequency: daily (360 times a year)
n = 360
r/n = 3.00%/360 = (3.00 ÷ 100)/360 = 3.00/(100 × 360)
r/n = 0.000083333333
t, Duration of the investment
n×t, Duration of the investment, related to n
n×t =
+ 2 years × 360 days / year
+ 5 months × 30 days / month
+ 29 days
n×t = 899 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
714.00 × (1 + 0.000083333333)899 =
714.00 × 1.000083333333899 =
714.00 × 1.077790966452 ≈
769.54
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
769.54 - 714.00 ≈
55.54
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 714.00 |
1 | 30 | 1.79 | 1.79 | 715.79 |
2 | 30 | 1.79 | 3.58 | 717.58 |
3 | 30 | 1.80 | 5.37 | 719.37 |
4 | 30 | 1.80 | 7.18 | 721.18 |
5 | 30 | 1.81 | 8.98 | 722.98 |
6 | 30 | 1.81 | 10.79 | 724.79 |
7 | 30 | 1.81 | 12.60 | 726.60 |
8 | 30 | 1.82 | 14.42 | 728.42 |
9 | 30 | 1.82 | 16.25 | 730.25 |
10 | 30 | 1.83 | 18.07 | 732.07 |
11 | 30 | 1.83 | 19.91 | 733.91 |
12 | 30 | 1.84 | 21.74 | 735.74 |
13 | 30 | 1.84 | 23.59 | 737.59 |
14 | 30 | 1.85 | 25.43 | 739.43 |
15 | 30 | 1.85 | 27.28 | 741.28 |
16 | 30 | 1.86 | 29.14 | 743.14 |
17 | 30 | 1.86 | 31.00 | 745.00 |
18 | 30 | 1.86 | 32.86 | 746.86 |
19 | 30 | 1.87 | 34.73 | 748.73 |
20 | 30 | 1.87 | 36.61 | 750.61 |
21 | 30 | 1.88 | 38.48 | 752.48 |
22 | 30 | 1.88 | 40.37 | 754.37 |
23 | 30 | 1.89 | 42.26 | 756.26 |
24 | 30 | 1.89 | 44.15 | 758.15 |
25 | 30 | 1.90 | 46.05 | 760.05 |
26 | 30 | 1.90 | 47.95 | 761.95 |
27 | 30 | 1.91 | 49.86 | 763.86 |
28 | 30 | 1.91 | 51.77 | 765.77 |
29 | 30 | 1.92 | 53.69 | 767.69 |
30 | 29 | 1.86 | 55.54 | 769.54 |
Month | Days | Interest | Total interest | Balance |
Answer: