I have a few loan accounts with NAB, one of which is $100k with a $0 balance in the offset account for the full Dec 2014 month. Let's assume interest rate I am on is 5%, what amount should I expect to pay for interest taken out of my savings account? I thought the amount should be very close to:
100000 x 0.05 / 365 * 31 = $424
Or more accurately for daily compounding:
100000 x [1+(0.05/365)]^31 - 100000 = 425.5
I was charged 450* instead today, which seems strange. The only explanation I have is I was charged for 33 days of interest, which will bring us close to 450, but why is it 33 days?
100000 x 0.05 / 365 * 31 = $424
Or more accurately for daily compounding:
100000 x [1+(0.05/365)]^31 - 100000 = 425.5
I was charged 450* instead today, which seems strange. The only explanation I have is I was charged for 33 days of interest, which will bring us close to 450, but why is it 33 days?