How do I calc interest when using multiple dates within a given ye

M

MrTaxGuy

I am trying to calculate interest using 2 interest rates in 1 calendar year.
Example:
Lets say that from January 1, 2005 through June 30, 2005 the interest rate
is 5 percent and the interest rate from July 1, 2005 through December 31,
2005 is 2 percent. How much interest is due on $1000.00 if the accrual date
starts on 03/01/2005 and is paid on 09/09/2005?
Currently, I have a formula that will calculate interest for a given year as
long as the interest rate does not change mid-year.
 
G

GeorgeF

Mr TaxGuy
You have presented a reduced question from a more general topic.
However, if this is your question and is based on SIMPLE Interest (n
compounding), then the interest charge is:
1000*(.05+.02)/2 or $35
I hope this is what you were asking. George
 

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