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ORDINARY INTEREST
- Thread starter smancinii
- Start date
HallsofIvy
Elite Member
- Joined
- Jan 27, 2012
- Messages
- 7,763
It's easy to count the number of days: Aug 5 to Aug 9 is 5 days: Aug 5, 6, 7, 8, 9.
The annual interest would be 0.09 x 1200= $108.
So the interest for 5 days is $108 times 5/365= 1/73
The annual interest would be 0.09 x 1200= $108.
So the interest for 5 days is $108 times 5/365= 1/73
I would not do it Hall’s way.
Subtract 4 days from each end, and the period will be the same: Aunusual 1 to August 5 is five extra days to add on to 30+31+30+31=122, giving 127 days total.
Follow that?
[MATH]i = 12000 * \dfrac{127}{365} * 0.09.[/MATH]
Make sense?
Subtract 4 days from each end, and the period will be the same: Aunusual 1 to August 5 is five extra days to add on to 30+31+30+31=122, giving 127 days total.
Follow that?
[MATH]i = 12000 * \dfrac{127}{365} * 0.09.[/MATH]
Make sense?
HallsofIvy
Elite Member
- Joined
- Jan 27, 2012
- Messages
- 7,763
You wouldn't do it my way because I misread the problem! I thought it was Aug. 5 to Aug. 9!