EQ 15-month GIC formula | EQ Bank | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
EQ 15-month GIC formula
June 7, 2022
10:21 am
iotama
Member
Members
Forum Posts: 12
Member Since:
March 3, 2022
sp_UserOfflineSmall Offline

Hello,

For $10k @ 3.80% for 15 months, EQ's GIC calc shows the return to be $479.42 interest earned.

What formula is used to calculate that?

Thank you very much!

a.jpg

June 7, 2022
10:37 am
hwyc
GTA
Member
Members
Forum Posts: 653
Member Since:
September 30, 2017
sp_UserOfflineSmall Offline

Show your math first?

June 7, 2022
10:37 am
FastJonny
Ontario
Member
Members
Forum Posts: 8
Member Since:
February 20, 2022
sp_UserOfflineSmall Offline

iotama said
Hello,

For $10k @ 3.80% for 15 months, EQ's GIC calc shows the return to be $479.42 interest earned.

What formula is used to calculate that?

Thank you very much!

a.jpg  

10000 x3.8% for 1 year = 380.00 = 10380 at one year
compounded annually, 10380.00 x 3.8% for 92 days more =99.42
380.00 + 99.42 = 479.42

June 7, 2022
10:42 am
cgouimet
Member
Members
Forum Posts: 491
Member Since:
February 7, 2019
sp_UserOfflineSmall Offline

iotama said
Hello,

For $10k @ 3.80% for 15 months, EQ's GIC calc shows the return to be $479.42 interest earned.

What formula is used to calculate that?

Thank you very much!

a.jpg  

1 yr @ 3.8% on $10,000 gains $380 (3.8/100 * 10,000).

Then 1/4 yr @ 3.8% on $10,380 (10,000 + 380) gains $98.61 (3.8/100/4 * 10, 380).

After 15 months or 1.25 yr you have $10,478.61 (10380 + 98.61).

As Oaken say, interest calcs are estimates ... 🙂

CGO
June 7, 2022
10:44 am
cgouimet
Member
Members
Forum Posts: 491
Member Since:
February 7, 2019
sp_UserOfflineSmall Offline

FastJonny said

10000 x3.8% for 1 year = 380.00 = 10380 at one year
compounded annually, 10380.00 x 3.8% for 92 days more =99.42
380.00 + 99.42 = 479.42  

Even gooder ... 🙂

A little less if the 1/4 year includes February ...

CGO
June 7, 2022
1:19 pm
iotama
Member
Members
Forum Posts: 12
Member Since:
March 3, 2022
sp_UserOfflineSmall Offline

Thank you all who helped! My mistake was not knowing that it's paid yearly (and compounded) to carry forward. Much appreciated! 🙂

June 17, 2022
8:17 am
hwyc
GTA
Member
Members
Forum Posts: 653
Member Since:
September 30, 2017
sp_UserOfflineSmall Offline

15 month GIC is 4% today sf-smile

Please write your comments in the forum.