How do you calculate earned interest?

Answer by  timeismoney (994)

Earned interest is calculated in accordance with the interest rate and the time period of a holding. For example, if your savings account pays a 1. 0% interest rate per year and you put $100 into the account, then, after one year, you will have earned 1% of $100 or $1. 00.

Answer by  pjsfb (221)

Earned interest can be calculated either on a daily or monthly basis. With a daily basis, it is the total of every day's closing balance times the interest rate divided by 365. If it is a monthly account, then it is the lowest daily balance times the interest rate divided by 12.

Answer by  Mimi74 (19)

Interest is usually given using a percentage per year. So, for example, if you earn a 3% interest on your savings account, and your balance in your savings for that entire year is $1000.00, you would earn 0.03 (interest in decimal form) x $1000.00 = $30.00 for that year.