# How is this interest rate calculated? [closed]

I am trying to solve how some people have calculated an interest amount:

Interest from: 2011-06-07 Interest to: 2011-06-21 principal: 307 134 000 Rate: 2,0000 ACT/360 Amount: 244 649.00

Now I can not come up with the amount basically I tried the following: ((14/360)*0,02)*307 134 000 = 236 615.66

I then tried to convert the rate to Act/360, so basically ((365/360)*0,02) = 0,020278 ((14/360)*0,020278)*307 134 000 = 239 870.49

My guess is that the interest is calculated with continuous compounding or something, anyone have any idea?

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What does ACT mean? –  Américo Tavares Jul 19 '11 at 9:36
Actual/360... so the interest would be calculated as if the year had 360 days. So basically if the interest is 2 % on a 360-basis the actual interest for a year would be 365 days divided by 360 multiplied with 2 % –  user829084 Jul 19 '11 at 10:52
Although, I think I have solved this one... it was some information missing. Basically they had written the whole thing in a very strange way! –  user829084 Jul 19 '11 at 10:53
You've got 239 870.49 and not 244 649.00. Is your question "how was 244 649.00 found?" –  Américo Tavares Jul 19 '11 at 11:33
Yes exactly, how was it calculated is my question :) –  user829084 Jul 19 '11 at 13:46