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 = 960.00
r, Annual compound interest rate, r = 1.00%
n, Number of times the interest compounds during a year
Compound frequency: daily (360 times a year)
n = 360
r/n = 1.00%/360 = (1.00 ÷ 100)/360 = 1.00/(100 × 360)
r/n = 0.000027777778
t, Duration of the investment
n×t, Duration of the investment, related to n
n×t =
+ 10 months × 30 days / month
n×t = 300 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
960.00 × (1 + 0.000027777778)300 =
960.00 × 1.000027777778300 =
960.00 × 1.008368035568 ≈
968.03
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
968.03 - 960.00 ≈
8.03
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 960.00 |
1 | 30 | 0.80 | 0.80 | 960.80 |
2 | 30 | 0.80 | 1.60 | 961.60 |
3 | 30 | 0.80 | 2.40 | 962.40 |
4 | 30 | 0.80 | 3.21 | 963.21 |
5 | 30 | 0.80 | 4.01 | 964.01 |
6 | 30 | 0.80 | 4.81 | 964.81 |
7 | 30 | 0.80 | 5.62 | 965.62 |
8 | 30 | 0.81 | 6.42 | 966.42 |
9 | 30 | 0.81 | 7.23 | 967.23 |
10 | 30 | 0.81 | 8.03 | 968.03 |
Month | Days | Interest | Total interest | Balance |
Answer: