Calculate the Future Investment Value and the Compound Interest earned by a principal of 1,017.00 (Dollar, Euro, Pound, ...), initial amount of money lent, deposited or borrowed, with a duration of 5 years, 3 months and 17 days, 7.00% annual interest rate, compounded half-yearly (twice a year)

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


Note: half a year = 1 semester


Number of days in a semester = 180


Number of semesters in a year = 2


[2] Future Investment Value, FV
Calculation formula:

FV =


P × (1 + r/n)n×t


FV, Future Investment Value


P, Principal (initial amount), P = 1,017.00


r, Annual compound interest rate, r = 7.00%


n, Number of times the interest compounds during a year
Compound frequency: half-yearly (twice a year)
n = 2


r/n = 7.00%/2 = (7.00 ÷ 100)/2 = 7.00/(100 × 2)
r/n = 0.035


t, Duration of the investment
n×t, Duration of the investment, related to n

n×t =

+ 5 years × 2 semesters / year
+ 3 months ÷ 6 months / semester
+ 17 days ÷ 180 days / semester

n×t ≈ 10.594444444444 semesters


>> Compound Interest: what is it, how is it calculated?


Calculate FV
Substitute for the values in the FV formula:

FV =


P × (1 + r/n)n×t =


1,017.00 × (1 + 0.035)10.594444444444 =


1,017.00 × 1.03510.594444444444 =


1,017.00 × 1.439742105529 ≈


1,464.22


[3] Compound interest amount, CI
Calculation formula

CI = FV - P


CI, compound interest amount

FV, Future Investment Value

P, Principal (initial amount)


CI ≈


1,464.22 - 1,017.00 ≈


447.22


[4] Project Breakdown. Half-yearly.

Interest compounded: half-yearly (twice a year).

Semester Days Interest Total
interest
Balance
0 0 -- -- 1,017.00
1 180 35.60 35.60 1,052.60
2 180 36.84 72.44 1,089.44
3 180 38.13 110.57 1,127.57
4 180 39.46 150.03 1,167.03
5 180 40.85 190.88 1,207.88
6 180 42.28 233.15 1,250.15
7 180 43.76 276.91 1,293.91
8 180 45.29 322.19 1,339.19
9 180 46.87 369.07 1,386.07
10 180 48.51 417.58 1,434.58
11 107 29.64 447.22 1,464.22
Semester Days Interest Total
interest
Balance

Answer:

Principal (initial amount) = 1,017.00

Future Investment Value = 1,464.22

Compound interest amount = 447.22


More calculations on Compound Interest and Future Investment Value:

Calculator: Compound Interest, Future Investment Value

FV = P × (1 + r/n)n×t + A × [(1 + r/m)m×t - 1] ÷ r/m

FV = Future Value of investment

P = Principal amount invested (the original contribution)

A = Regular contribution (additional money added periodically to the initial investment, P)

r = Annual Interest Rate the investment is earning

n = Number of times the interest compounds during a year

m = Number of times the regular contribution is made during a year

t = Number of years the investment is going to be active

t and r are expressed using the same time units

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