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 = 946.00
r, Annual compound interest rate, r = 2.40%
n, Number of times the interest compounds during a year
Compound frequency: daily (360 times a year)
n = 360
r/n = 2.40%/360 = (2.40 ÷ 100)/360 = 2.40/(100 × 360)
r/n = 0.000066666667
t, Duration of the investment
n×t, Duration of the investment, related to n
n×t =
+ 3 months × 30 days / month
n×t = 90 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
946.00 × (1 + 0.000066666667)90 =
946.00 × 1.00006666666790 =
946.00 × 1.00601783489 ≈
951.69
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
951.69 - 946.00 ≈
5.69
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 946.00 |
1 | 30 | 1.89 | 1.89 | 947.89 |
2 | 30 | 1.90 | 3.79 | 949.79 |
3 | 30 | 1.90 | 5.69 | 951.69 |
Month | Days | Interest | Total interest | Balance |
Answer: