Simple interest with sub-annual interest periods formula
Financial acronyms
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Description of the Simple interest with sub-annual interest periods formula
Formula for the calculation of simple interest with sub-annual interest calculation periods.
Formula
\[ I=C\cdot r\cdot \frac{n}{n_{Y}} \ \]
Symbols
\(C\ \)
Start capital
\(n\ \)
Number of days
\(n_{Y}\ \)
Number of days per year (360, 365 or 366 depending on day-count convention)
\(r\ \)
Nominal annual interest rate