Compound Interest between Dates
The Compound Interest between Dates calculation lets you calculate calculate interest between two dates based upon a fixed or a variable interest rate.
This method calculates compound interest for both full and fractional (stub) periods. Intervals can be determined according to sixteen different day count conventions.
Input
| •
fixed interest rate |
|
| • compounding frequency | |
| • start date | |
| • end date | |
| • start value | |
| • interest rounding: | |
| • none: interest is only rounded on screen, internally it is not rounded | |
| • nearest: interest is rounded up or down to the nearest value based upon the precision of the start value | |
| • up: interest is rounded up to the same precision as the start value | |
| • down: interest is rounded down to the same precision as the start value | |
Note: When a variable interest rate is selected, the start and end dates must be within the limits of the selected table, otherwise input dates will be marked as invalid.
Results
| • end value |
| • total interest |
| • total interest days |
| • number of leap days |
Getting variable interest tables tables
Several variable interest tables are available at the ParanzaSoft web site. If you create some "interesting" variable interest tables or found a link that you would like to share with other FinKit users, please email us.
Example
| • | On
January 1, 2002 someone borrows $10,000 at 6 %
interest compounded monthly. The actual/360 day count
is used.
Answer: $11,561.98. |
Related topics
| Simple Interest between Dates |
| Actuarial Interest between Dates |
| Simple interest |
| Compound interest |
| Variable interest tables |
| Day count conventions |
| Year Fraction |
| Date Series |
| Time between Dates |