Posted on: 03rd Nov, 2009 09:39 pm
My company deposited 11,621,800.01 @ 7% for 184 days and on 185th day it was redeposited (along with the interest earned) for another 181 days @ 6%. On the 366th day, we had 12,399,768.00 in our bank. What's the average interest earned? - Give me formula how to calculate it.
My answer was 6.69% - Which I know is correct.
This is a simple quote I am giving. Why I am asking a formula is because, I have several such deposits for varying rates and no. of days for any given particular year like
40,000,000 @ 2.00% for 20 days
25,000,000 @ 4.25% for 92 days - or 3 months
7,000,000 @ 7.5% for 182 days - or 6 months etc
The bank calculates interest per day and credits our FDs on maturity date - base is 360 day year.
Can you help me please?
My answer was 6.69% - Which I know is correct.
This is a simple quote I am giving. Why I am asking a formula is because, I have several such deposits for varying rates and no. of days for any given particular year like
40,000,000 @ 2.00% for 20 days
25,000,000 @ 4.25% for 92 days - or 3 months
7,000,000 @ 7.5% for 182 days - or 6 months etc
The bank calculates interest per day and credits our FDs on maturity date - base is 360 day year.
Can you help me please?
Hi raja!
Welcome to forums!
As far as I know, to calculate the average interest earned, you will have to use the following formula:
Interest = (Principal x Rate x Time)/365
Sussane
Welcome to forums!
As far as I know, to calculate the average interest earned, you will have to use the following formula:
Interest = (Principal x Rate x Time)/365
Sussane
Thank you Sussane. Actually I am looking for the avg % not $ amt. Any help?
And secondly, Your name seems to be familiar - But I can't recollect from where did I see your name. Are you a CMA or pursuing it by any chance? If so, in which forum did you visit/are in? like Hock Intl'. etc Or were you teaching at American University or something like that?
Regard
Raja
And secondly, Your name seems to be familiar - But I can't recollect from where did I see your name. Are you a CMA or pursuing it by any chance? If so, in which forum did you visit/are in? like Hock Intl'. etc Or were you teaching at American University or something like that?
Regard
Raja
Contact a person who is an expert in such calculations and he would help you in a better way.
great idea, guest, but i think raja was hoping that said "expert" might be lurking in the halls of mortgagefit.com. i guess that's not the case so far.
