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| Date | Transaction | Amount |
|---|---|---|
| 01 Mar 2013 | Deposit | 1200 |
| 02 Mar 2013 | Withdrawal | 100 |
| 10 Mar 2013 | Withdrawal | 400 |
| 15 Mar 2013 | Deposit | 200 |
| 16 Mar 2013 | Withdrawal | 900 |
| 18 Mar 2012 | Deposit | 200 |
| 21 Mar 2012 | Deposit | 700 |
| 31st Mar 2013 | Withdrawal | 100 |
Daily Compounding - Monthly Posting Using Daily Balance Method
The account activity breaks down into the following End of Day Balances:
Monthly Posting so we want to post interest to the account for periods (01 Mar - 31 Mar), (01 Apr - 30 Apr), (01 May - 31 May), (01 Jun - 30 Jun)
Compound Interest Forumula using in Daily Compounding:
The future value of a savings account balance on a given end of day is calculated using the following:
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| Note | ||
|---|---|---|
| ||
The frequency of the posting period makes no difference (or neglible difference) to the interest earned on the savings account when using compound interest. See the break down of the account activity with monthly, quarterly and yearly posting frequencies. |
Daily Compounding - Monthly Posting Using Daily Balance Method
The account activity breaks down into the following End of Day Balances:
Monthly Posting so we want to post interest to the account for periods (01 Mar - 31 Mar), (01 Apr - 30 Apr), (01 May - 31 May), (01 Jun - 30 Jun)
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|
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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