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 From: Boudewijn Lutgerink
  Where is Boudewijn Lutgerink?
 Hoonaardstraat, Driel
 Netherlands
 Boudewijn Lutgerink
 To: Raju S
  Where is Raju S?
 Mumbai
 India
 Raju S
 Tags
Subject: RE: Interest calculation
Thread ID: 197197 Message ID: 197222 # Views: 71 # Ratings: 1
Version: Visual FoxPro 9 Category: General VFP Topics
Date: Thursday, October 02, 2008 9:48:10 AM         
   


> Hi Experts,
>
> I want to calculate interest amount for a period i.e. between date1 and date2 on amt1 i.e.1000
> the formula is
> Interest=Amt1 + Amt1*(date2-date1)*(12/100)
> = 1120
>
> Now this formula works fine for a period upto 365 days. But for a longer period, it fails, becuase interest for 1st year is to be added to the principal and on the gross amount, interest for the 2nd year is to be calculated.
>
> I am sure, there must be a mathematical function available in foxpro. If someone knows about it, please let me know.
>
> Thanks.

n = amount invested
i = intrest rate in percentage
t = number of years

((1+(i/100)^t)*n

so if you have 650 euro to invest for 5 years against a rate of 6.5% the calculation is

((1+(6.5/100)^5)*650 = 890.55633122015625

If the year is broken, let's say you want to invest some money for 5 years and 3 months (1/4 year) you should add the interest of the last year seperately, by dividing the interest rate by 4.
This however is completely depending on the bank policy. Some will only pay interest at end of period. Any money withdrawn from the account inbetween payment dates will not receive interest with some banks.

Boudewijn LutgeĀ®ink
http://www.vfpdevelopers-online.com
The truth will set you free, Ken knew the truth!

COMPLETE THREAD

Interest calculation Posted by Raju S @ 10/2/2008 7:27:08 AM
RE: Interest calculation Posted by Bhushan Sahni @ 10/2/2008 8:54:26 AM
RE: Interest calculation Posted by Boudewijn Lutgerink @ 10/2/2008 9:48:10 AM
RE: Interest calculation Posted by Raju S @ 10/6/2008 10:41:16 AM
RE: Interest calculation Posted by Jun Tangunan @ 10/6/2008 1:09:03 PM
RE: Interest calculation Posted by tushar @ 10/6/2008 2:29:21 PM
RE: Interest calculation Posted by Raju S @ 10/10/2008 5:19:55 PM
RE: Interest calculation Posted by Glenn Villar @ 10/2/2008 10:03:31 AM
RE: Interest calculation Posted by Anup Singh @ 10/2/2008 10:45:31 AM
RE: Interest calculation Posted by Jun Tangunan @ 10/4/2008 10:59:27 AM