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Function documentation Annual Calculation of Compound Interest  Locate the document in its SAP Library structure

Use

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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Example

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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.

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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.

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The final principal amount is EUR 117,424.14.

 

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