Simple interest with sub-annual interest periods formula

Tag: time value of money

Description of the Simple interest with sub-annual interest periods formula

Formula for the calculation of simple interest with sub-annual interest calculation periods.

I = C \cdot r \cdot \frac{n}{n_{Y}}

C

Start capital

n

Number of days

n_{Y}

Number of days per year (360, 365 or 366 depending on )

r

Nominal annual interest rate