Interest on your bitcoin savings is compounded monthly, and is calculated using the Compound Monthly Rate. This is a function of the Annual Effective Rate (AER), and is derived by the following formula:
the Compounding Monthly Rate is:
0.106046%
where:
r = Compound Interest Rate: monthly compounding interest rate
AER = Annual Effective Rate: as set by Magnr Savings
To calculate the Final Total Amount after the last compounding period, this can be found by using the formula as below:
where:
A = Final Total Amount: Initial Investment plus all Interest
P = Initial Investment: your first Deposit amount
r = Compound Interest Rate: monthly compounding interest rate
n = Number of Compound Periods: number of times interest is paid out
Click here for some examples of how these are applied to your investment over a 12-month period.
Further Notes:
- AER = Annual Effective Rate. This also referred to as APY (Annual Percentage Yield) in the U.S.
- Actual Rate: 0.106045959 %
- Rates are to be entered as decimal figure on calculations (not percentage)
- quoted rate correct as of November 2016