After all the technical explanations and mathematical formulas, the best is to have a numeric example to make it cristal clear, right?
First, let´s get started using the standard formula for interests calculation:
As explained in my previous post, the CDI is an interest rate published on a daily basis that must be compounded for the calculation of interests amounts.
First step for the compounding process is the calculation of the daily interests. Assuming that the CDI for the first day of the investment period is 11%, then the interests calculation for a 100,000 BRL investment would be:
Interested in more information about the CDI and how financial products using this rate are calculated? Send me an email: mmatsmoto@gmail.com
Balance of your investment at day one: 100,041.42 BRL
Assuming that CDI for day two is 11,25%, interests calculation should be:
Balance of your investment at day two: 100,083.75 BRL
After one month (21 business days), the balance of your investment should be 100,877.42 BRL:
Interested in more information about the CDI and how financial products using this rate are calculated? Send me an email: mmatsmoto@gmail.com
