How can I calculate the interest rate of an account which is "compunded daily but accrued monthly?

How can I calculate the interest rate of an account which is "compunded daily but accrued monthly" Asked by halebopp 37 months ago Similar questions: calculate interest rate account compunded daily accrued monthly Business > Financial Services.

Similar questions: calculate interest rate account compunded daily accrued monthly.

To calculate the daily rate just divide the interest rate by 365. First you need to figure out what your daily interest rate is. For example, you have an account earning 4%.

You need to divide 4% by 365 to figure out your daily rate.04/365 = .0001096%. This is the rate that is used daily to calculate the interest.So for example, if you have $4,000 in your account, you will make about $0.4384. (0001096% X $4,000).

This money is set aside into a bank holding account each day until the end of the month.At the end of the month, all the money that was earned each day is added into the account to the original $4,000. Thus at the end of the month, assuming you made no deposits or withdrawals, your account will have grown to $4,013.59. ($0.4384 X 31 = $13.59).

It depends on the number of days in the month whether you multiply by 28, 29, 30, or 31. Then the next month, assuming no deposits, withdrawals, or change in interest rate, the new amount $4,013.59 is compounded daily and the same thing happens again. The accrued interest is added at the end of the month to create the balance for the next month.

Once you know the interest rate, it is easy to calculate the daily rate to give you your answer.

Those are two different answers.(I actually began to answer how the expense was calculated, then looked again at your question.) .

Those are two different answers.(I actually began to answer how the expense was calculated, then looked again at your question.).

" "what does accrued contributions mean. Does it included interest?

What does accrued contributions mean. Does it included interest?

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