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| 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 | =3.404197546 |
Compounded Monthly on Daily Balance
...
| Date | Starting Bal | End Of Period Bal | Days | Interest Earned | Total Interest Compounded | |
|---|---|---|---|---|---|---|
| 1st Mar | 0 | 1200 | 1 | 0 | ||
| 2nd Mar | 1200 | 1100 | 8 | 0 | ||
| 10th Mar | 1100 | 700 | 5 | 0 | ||
| 15th Mar | 700 | 900 | 1 | 0 | ||
| 16th Mar | 900 | 0 | 2 | 0 | ||
| 18th Mar | 0 | 200 | 3 | 0 | ||
| 21st Mar | 200 | 900 | 10 | 0 | ||
| 31st Mar | 900 | 800 | 1 | 0 | ||
| 800 | 31 | Total interest earned = 3.40 credited on 1st April 2013 |
...
| =3.397260275 |
There is no difference between daily compounding and monthly compounding on what interest is credited at the end of the month after rounding: 3.40
The daily compounding results in (3.404197546 - 3.397260275 =) 0.006937271 more interest at the end of the month given the example account activity.
Compounding Monthly on Average Daily Balance
...