Calculation method used. Calculation formula. Used notations
[1] Calculation method used: 30 / 360
Number of days in a month = 30
Number of days in a year = 360
[2] Simple interest, I
Calculation formula:
I =
(P × r × t) ÷ 360
I = Simple interest amount
360 = Number of days in a year
P = Principal (initial amount)
P = 1,911.00 units (Dollar, Euro, Pound, etc.)
r = Annual simple interest rate, r = 2.20%
t = Duration of the investment, in days
t = 1 month and 20 days
t =
+ 1 month × 30 days / month
+ 20 days
t = 50 days
Calculate the simple interest amount
[3] Substitute for the values
in the Simple Interest formula:
I =
(P × r × t) ÷ 360 =
(1,911.00 × 2.20% × 50) ÷ 360 =
1,911.00 × 2.20 ÷ 100 × 50 ÷ 360 =
(1,911.00 × 2.20 × 50) ÷ (360 × 100) =
210,210.00 ÷ 36,000 ≈
5.839166666667 ≈
5.84
[4] V = Amount earned before deducting the
Withdrawal Fee Amount:
V = P + I =
1,911.00 + 5.84 =
1,916.84
Withdrawal Fee Amount, Fw. Financial gain, Pr
[6] The amount charged for withdrawing the money
Fw = Fw% × V
Fw, Withdrawal Fee Amount
Fw%, Commission Fee % (on withdrawal), as a percentage
V, Amount earned, V = P + I
Fw =
Fw% × V =
1% × 1,916.84 =
1/100 × 1,916.84 =
(1 × 1,916.84)/100 =
1,916.84/100 =
1,916.84 ÷ 100 =
19.1684 ≈
19.17
[7] Financial gain, Pr:
Pr = I - Fw
Pr, financial gain
I, simple interest amount
Fw, Withdrawal Fee Amount
Pr =
I - Fw =
5.84 - 19.17 =
- 13.33
Answer:
Principal (initial amount) = 1,911.00
Amount earned = 1,916.84
Simple interest amount = 5.84
Withdrawal Fee Amount = 19.17
Financial gain = - 13.33