Annual
Calculation of Compound Interest
The system uses the following interest formula, in which the quotient days/base days appears in the exponent, for this type of exponential interest calculation.

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1. An interest rate of 5.5 % is calculated from 02/12/00 to 07/01/00 for a principal amount of EUR 100,000 using the Interest Calculation Method. The result is an interest amount of EUR 2,088.78.

The final principal amount is EUR 102,088.78.
2. An interest rate of 5.5 % is calculated from 02/12/00 to 02/12/03 for a principal amount of EUR 100,000 with the interest calculation method 360E/360 . The result is an interest amount of EUR 17,424.14.

The final principal amount is EUR 117,424.14.