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The future value of a savings account balance on a given end of day is calculated using the following:
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FV = PV x (1 + r)^n where, PV = The end of day balance e.g. 1200 r = periodic interest rate so in this case daily interest rate which is worked out by dividing 1 by 365 (number of days in year) and mulitplying by 0.05 (5%) n = number of compounding periods the balance/PV will compound - in the same period as the periodic interest rate - so in this case Days. So if a balance exists for 5 days we use n=5 to calculate what the balance produces in interest when compounding. |
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Interest earned over the four months results in interest of 13.48 will be posted to clients account. It results in client having a Loss of 0.003506984 due to rounding of interest earned at posting. |
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| Date | Up to & (inclusive) | Days | Type | Amount | Opening Bal | Closing Bal | Interest on Bal | Interest To Date | Bal for Compounding | (I) Posted | Gain/Loss Due To Rounding |
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01/03/2013 | 01/03/2013 | 1 | Deposit | 1200 | 0 | 1200 | 0.164383562 | 0.164383562 | 1200.164383562 | ||
| 02/03/2013 | 09/03/2013 | 8 | Withdrawal | 100 | 1200 | 1100 | 1.206237813 | 1.370621375 | 1,101.370621375 | ||
| 10/03/2013 | 14/03/2013 | 5 | Withdrawal | 400 | 1100 | 700 | 0.480522469 | 1.851143844 | 701.851143844 | ||
| 15/03/2013 | 15/03/2013 | 1 | Deposit | 200 | 700 | 900 | 0.123541253 | 1.974685097 | 901.974685097 | ||
| 16/03/2013 | 17/03/2013 | 2 | Withdrawal | 900 | 900 | 0 | 0.000541047 | 1.975226144 | 1.975226144 | ||
| 18/03/2013 | 20/03/2013 | 3 | Deposit | 200 | 0 | 200 | 0.083014888 | 2.058241032 | 202.058241032 | ||
| 21/03/2013 | 30/03/2013 | 10 | Deposit | 700 | 200 | 900 | 1.236458229 | 3.294699261 | 903.294699261 | ||
| 31/03/2013 | 31/03/2013 | 1 | Withdrawal | 100 | 900 | 800 | 0.110040370 | 3.404739631 | 803.404739631 | 3.40 | -0.004739631 |
| 01/04/13 | 30/04/2013 | 30 | Interest Posting | 3.40 | 800 | 803.40 | 3.308210288 | 3.308210288 | 806.708210288 | 3.31 | +0.001789712 |
| 01/05/13 | 31/05/2013 | 31 | Interest Posting | 3.31 | 803.40 | 806.71 | 3.432803347 | 3.432803347 | 810.142803347 | 3.43 | -0.002803347 |
| 01/06/13 | 30/06/2013 | 30 | Interest Posting | 3.43 | 806.71 | 810.14 | 3.335964006 | 3.335964006 | 813.475964006 | 3.34 | +0.004035994 |
| 122 | 813.48 | 13.48 | Loss of 0.003506984 |
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