Interest Calculation: How to Calculate Monthly Interest Owed
How do you calculate the interest owed for the month?
If the average daily balance is $1,133.33 and the monthly interest rate is 1.62%, how much interest is owed this month?
Calculation of Monthly Interest Owed
The interest owed for the month, given an average daily balance of $1,133.33 and a monthly interest rate of 1.62%, would be $18.36.
Calculating the interest owed for the month involves multiplying the average daily balance by the monthly interest rate. In this case, with an average daily balance of $1,133.33 and a monthly interest rate of 1.62%, the interest owed can be calculated as follows:
$1,133.33 * 1.62/100 = $18.36
Therefore, the interest owed for this month would amount to $18.36.
Understanding how to calculate interest is important for managing finances and assessing the cost of borrowing money.