S
Silvabod
Given - interest calculated daily, paid monthly. no interest change in this
timescale.
Quoted rates are Annual rate 5.34% gross = AER 5.45% (less 20% tax from
both rates, = NET)
THOUGHT it would be a relatively simple matter to forward calculate, in
round terms.
Calculated the # of days in each interest period, divided the (NET) interest
by that, to arrive at the average daily interest earned for each period.
Given the capital is only increased by the net interest, I would have
expected this average "daily" interest to be a regular small upward
progression - NOT SO.
Short extract
31 Aug 44889.72
29 Sep (29 days) net interest + 148.46 = 45038.18 (148.46 / 29 = daily
rate 5.11931
31 Oct (32 days) " " + 153.93 = 45192.11 (153.93 / 32 = "
" 4.81031
30 Nov (30 days) " " + 155.50 = 45347.51 (155.50 / 30 = "
" 5.18333
29 Dec (29 days) " " + 163.92 = 45511.53 (163.92 / 29 = "
" 5.65241
Where am I going wrong?
timescale.
Quoted rates are Annual rate 5.34% gross = AER 5.45% (less 20% tax from
both rates, = NET)
THOUGHT it would be a relatively simple matter to forward calculate, in
round terms.
Calculated the # of days in each interest period, divided the (NET) interest
by that, to arrive at the average daily interest earned for each period.
Given the capital is only increased by the net interest, I would have
expected this average "daily" interest to be a regular small upward
progression - NOT SO.
Short extract
31 Aug 44889.72
29 Sep (29 days) net interest + 148.46 = 45038.18 (148.46 / 29 = daily
rate 5.11931
31 Oct (32 days) " " + 153.93 = 45192.11 (153.93 / 32 = "
" 4.81031
30 Nov (30 days) " " + 155.50 = 45347.51 (155.50 / 30 = "
" 5.18333
29 Dec (29 days) " " + 163.92 = 45511.53 (163.92 / 29 = "
" 5.65241
Where am I going wrong?