Interest Query

[joecc]

Hi lads,
I must be making some simple mistake on this one....
I set up an installment savings plan with one of the institutions....

I Saved 2,670 over the course of the year....
Interest is 4%

But I only received 42.51euro....net of DIRT (27 per cent)

I make out it should be 106.80 total interest, then take off DIRT, which leaves 77.94?

anyone?

 

[callybags]

You're calculating the interest on the full 2,670 for the whole year.

Only the first months instalment of 225.5 will accrue interest for the full year.

The second instalment will only have 11 months and so on.

The last lodgment of 225.5 will only have interest of 75 cent (225.2 X 4%/12)

 

[dockingtrade]

its like some banks around 2 years ago were advertising 7.5% int over a year for 12 regular installments. The 1st installment got 7.5%. This is why yo need to look at aer which on the above was aboyt 4% before dirt.