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 = 1,000.00
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 =
+ 1 month × 30 days / month
n×t = 30 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
1,000.00 × (1 + 0.000027777778)30 =
1,000.00 × 1.00002777777830 =
1,000.00 × 1.000833669075 ≈
1,000.83
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
1,000.83 - 1,000.00 ≈
0.83
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 1,000.00 |
1 | 30 | 0.83 | 0.83 | 1,000.83 |
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 =
5% × 1,000.83 =
5/100 × 1,000.83 =
(5 × 1,000.83)/100 =
5,004.17/100 =
5,004.17 ÷ 100 =
50.0417 ≈
50.04
[6] Financial gain, Pr:
Pr = CI - Fw
Pr, financial gain
CI, compound interest amount
Fw, Withdrawal Fee Amount
Pr =
CI - Fw =
0.83 - 50.04 =
- 49.21
Answer:
Principal (initial amount) = 1,000.00
Future Investment Value = 1,000.83
Compound interest amount = 0.83
Withdrawal Fee Amount = 50.04
Financial gain = - 49.21