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 = 246.00 units (Dollar, Euro, Pound, etc.)
r = Annual simple interest rate, r = 9.20%
t = Duration of the investment, in days
t = 10 months
t =
+ 10 months × 30 days / month
t = 300 days
Calculate the simple interest amount
[3] Substitute for the values
in the Simple Interest formula:
I =
(P × r × t) ÷ 360 =
(246.00 × 9.20% × 300) ÷ 360 =
246.00 × 9.20 ÷ 100 × 300 ÷ 360 =
(246.00 × 9.20 × 300) ÷ (360 × 100) =
678,960.00 ÷ 36,000 =
18.86
[4] V = Amount earned:
V = P + I =
246.00 + 18.86 =
264.86