I'm pretty sure this is a dumb question, but here goes. How do I calculate how much interest I'll lose when I withdraw money from a savings account?
Say I have an account attracting 4% interest, paid annually on 31/12. So on 1/1/2011, I put in 1000 euro, that will earn about 40 euro in the first year (less dirt). The 1000 euro I put in in December will only earn about 3 euro. If I take out 1000 euro in December, "which" 1000 do they take? How is this usually calculated?
On a spreadsheet, I calculated how much interest the 1/1 deposit makes, how much interest the 1/12 deposit makes and how much negative interest the 2/12 withdrawal makes. Then add them all up?
Say I have an account attracting 4% interest, paid annually on 31/12. So on 1/1/2011, I put in 1000 euro, that will earn about 40 euro in the first year (less dirt). The 1000 euro I put in in December will only earn about 3 euro. If I take out 1000 euro in December, "which" 1000 do they take? How is this usually calculated?
On a spreadsheet, I calculated how much interest the 1/1 deposit makes, how much interest the 1/12 deposit makes and how much negative interest the 2/12 withdrawal makes. Then add them all up?
Code:
01-Jan 1000 39.89
01-Dec 1000 3.18
02-Dec -1000 -3.07
40.00