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Interest Received - could someone please double check?
Comments
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Hi,
I've just reread the first post, OP is not asking for annual interest, but interest up to 7/10/12, 11 months and 5 days, so Santander about right.0 -
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ah yes, so it's the long calculation (unless one can remember the formula!) whereby you :
Month 1 = £x + 5% + deposit
Month 2 = £x2 + 5% + deposit
etc
got it. This plan says 'interest is calculated daily', so maybe that's something to do with it (again, I can't remember the calculation).
You'd be amazed to learn I recently passed the IFA's exam for this kind of thing (R02)!0 -
Consumerist wrote: »The period covered was not a full year either.
Yes it was!
Interest last paid 7/10/11, taking the balance to 8866.24.
Then further transactions during the year, and interest paid again on 7/10/12.0 -
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Hi,ah yes, so it's the long calculation (unless one can remember the formula!) whereby you :
Month 1 = £x + 5% + deposit
Month 2 = £x2 + 5% + deposit
etc
got it. This plan says 'interest is calculated daily', so maybe that's something to do with it (again, I can't remember the calculation).
You'd be amazed to learn I recently passed the IFA's exam for this kind of thing (R02)!
well I would say the long calculation was,
Month 1 =£x+5% =Y
Month 2 =(Y + 300) +5% =Z
Month 3 =(Z + 300) + 5% =?0 -
[Deleted User] wrote:Hi,
well I would say the long calculation was,
Month 1 =£x+5% =Y
Month 2 =(Y + 300) +5% =Z
Month 3 =(Z + 300) + 5% =?
That would be correct if interest was compounded (paid) monthly ... here, all the interest is paid at the end of the year (7th October each year).
The way that I calculate this is:
Month 1 interest = [Month 1 balance] * 5% / 365 * [number of days in month 1]
Month 2 interest = [Month 2 balance] * 5% / 365 * [number of days in month 2]
Month 3 interest = ... as above
And then add up all the interest amounts.0 -
I think the issue is with the deposit(s) in the month of October.
2nd October 2011 - you paid something
7th October 2011 - Interested was added and balance was £8,866.24
2nd October 2012 - you paid £300
7th October 2012 - Interested was added including only 5 days interest in October 2012 and the remaining days of the month (if you like) accrued last year, when the balance was lower.0
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