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 = 106.00
r, Annual compound interest rate, r = 1.50%
n, Number of times the interest compounds during a year
Compound frequency: daily (360 times a year)
n = 360
r/n = 1.50%/360 = (1.50 ÷ 100)/360 = 1.50/(100 × 360)
r/n = 0.000041666667
t, Duration of the investment
n×t, Duration of the investment, related to n
n×t =
+ 1 year × 360 days / year
+ 5 months × 30 days / month
+ 13 days
n×t = 523 days
Calculate FV
Substitute for the values in the FV formula:
FV =
P × (1 + r/n)n×t =
106.00 × (1 + 0.000041666667)523 =
106.00 × 1.000041666667523 =
106.00 × 1.022030375394 ≈
108.34
[3] Compound interest amount, CI
Calculation formula
CI = FV - P
CI, compound interest amount
FV, Future Investment Value
P, Principal (initial amount)
CI ≈
108.34 - 106.00 ≈
2.34
[4] Project Breakdown. Monthly.
Interest compounded: daily (360 times a year).
Month | Days | Interest | Total interest | Balance |
---|
0 | 0 | -- | -- | 106.00 |
1 | 30 | 0.13 | 0.13 | 106.13 |
2 | 30 | 0.13 | 0.27 | 106.27 |
3 | 30 | 0.13 | 0.40 | 106.40 |
4 | 30 | 0.13 | 0.53 | 106.53 |
5 | 30 | 0.13 | 0.66 | 106.66 |
6 | 30 | 0.13 | 0.80 | 106.80 |
7 | 30 | 0.13 | 0.93 | 106.93 |
8 | 30 | 0.13 | 1.07 | 107.07 |
9 | 30 | 0.13 | 1.20 | 107.20 |
10 | 30 | 0.13 | 1.33 | 107.33 |
11 | 30 | 0.13 | 1.47 | 107.47 |
12 | 30 | 0.13 | 1.60 | 107.60 |
13 | 30 | 0.13 | 1.74 | 107.74 |
14 | 30 | 0.13 | 1.87 | 107.87 |
15 | 30 | 0.13 | 2.01 | 108.01 |
16 | 30 | 0.14 | 2.14 | 108.14 |
17 | 30 | 0.14 | 2.28 | 108.28 |
18 | 13 | 0.06 | 2.34 | 108.34 |
Month | Days | Interest | Total interest | Balance |
Answer: