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Based on 365 days in year, Nominal Annual Interest Rate: 5% and a daily compounding period, monthly crediting period:
Daily Rate is: 0.0001369863014 ==> (0.05 x (1/365)).
The formula is: Interest = Balance x Daily Rate (DR) x Number of Days
The Balance in this case is always the end of day blance plus and cumulative interest earned in the compounding periods before hand (which in this is daily).
Date | Starting Bal | End Of Period Bal | Days | Interest Earned | Total Interest Compounded |
---|---|---|---|---|---|
1st Mar | 0 | 1200 | 1 | 1200 x 0.0001369863014 = 0.1643835617 | 0.164383562 |
2nd Mar | 1200 | 1100 | 1 | 1100 + (compounded interest to date) x DR = 0.1507074499 | 0.3150910116 |
3rd Mar | 1100 | 1100 | 1 | 1100 + (compounded interest to date) x DR = 0.1507280947 | 0.4658191063 |
1100 | 1100 | 1 | 1100 + (compounded interest to date) x DR = 0.1507487424 | 0.6165678487 | |
1100 | 1100 | 1 | 1100 + (compounded interest to date) x DR = 0.1507693929 | 0.7673372416 | |
1100 | 1100 | 1 | 1100 + (compounded interest to date) x DR = 0.1507900462 | 0.9181272878 | |
1100 | 1100 | 1 | 1100 + (compounded interest to date) x DR = 0.1508107024 | 1.068937990 | |
1100 | 1100 | 1 | 1100 + (compounded interest to date) x DR = 0.1508313614 | 1.219769351 | |
9th Mar | 1100 | 1100 | 1 | 1100 + (compounded interest to date) x DR = 0.1508520232 | 1.370621374 |
10th Mar | 1100 | 700 | 1 | 700 + (compounded interest to date) x DR = 0.09607816734 | 1.466699541 |
700 | 700 | 1 | 700 + (compounded interest to date) x DR = 0.09609132872 | 1.562790870 | |
700 | 700 | 1 | 700 + (compounded interest to date) x DR = 0.09610449193 | 1.658895362 | |
13th Mar | 700 | 700 | 1 | 700 + (compounded interest to date) x DR = 0.09611765693 | 1.755013019 |
14th Mar | 700 | 700 | 1 | 700 + (compounded interest to date) x DR = 0.09613082372 | 1.851143843 |
15th Mar | 700 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1235412526 | 1.974685096 |
16th Mar | 900 | 0 | 1 | 0 + (compounded interest to date) x DR = 0 | 1.974685096 |
17th Mar | 0 | 0 | 1 | 0 | 1.974685096 |
18th Mar | 0 | 200 | 1 | 200 + (compounded interest to date) x DR = 0.02766776509 | 2.002352861 |
19th Mar | 200 | 200 | 1 | 200 + (compounded interest to date) x DR = 0.02767155520 | 2.030024416 |
20th Mar | 200 | 200 | 1 | 200 + (compounded interest to date) x DR = 0.02767534581 | 2.057699762 |
21st Mar | 200 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1235695479 | 2.181269310 |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1235864753 | 2.304855785 | |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1236034049 | 2.428459190 | |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1236203369 | 2.552079527 | |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1236372712 | 2.675716798 | |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1236542078 | 2.799371006 | |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1236711467 | 2.923042153 | |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1236880880 | 3.046730241 | |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1237050316 | 3.170435273 | |
900 | 900 | 1 | 900 + (compounded interest to date) x DR = 0.1237219775 | 3.294157250 | |
Mar 31st | 900 | 800 | 1 | 800 + (compounded interest to date) x DR = 0.1100402955 | 3.404197546 |
800 | 31 | Total interest earned = 3.40 credited on 1st April 2013 |
Compounded Monthly on Daily Balance
Based on 365 days in year, Nominal Annual Interest Rate: 5% and a monthly compounding period, monthly crediting period:
Daily Rate is: 0.0001369863014 ==> (0.05 x (1/365)).
The formula is: Interest = Balance x Daily Rate (DR) x Number of Days
The Balance in this case is always the end of day blance plus and cumulative interest earned in the compounding periods before hand (which in this is daily).
Date | Starting Bal | End Of Period Bal | Days | Interest Earned | Total Interest Compounded |
---|---|---|---|---|---|
1st Mar | 0 | 1200 | 1 | ||
2nd Mar | 1200 | 1100 | 8 | ||
10th Mar | 1100 | 700 | 5 | ||
15th Mar | 700 | 900 | 1 | ||
16th Mar | 900 | 0 | 2 | ||
18th Mar | 0 | 200 | 3 |
...
21st Mar | 200 | 900 | 10 | ||
31st Mar | 900 | 800 | 1 | ||
800 | 31 |
Compounding Monthly on Average Daily Balance
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