Dear partners!
Often our support team has questions from our Members about accounting total earnings and total period definition for the compounded deposits. Please find below our basic principles of calculation and a sample, which, we hope, will clarify the algorithm of accruing yields and time periods.
First of all, as we had repeatedly explained - maturity period is a constant value for a given portfolio, and it is 30 business days for DEMO, and 270 business days for regular ones, SINCE THE DAY OF DEPOSITING OR ADDING UP FUNDS TO THE EXISTED DEPOSIT.
e.g.
for an investment of $50.00 (i. e. Demo portfolio for 30 business days), set at 100% compound rate, the daily yield is 0.5% (to simplify, we assume that the member doesn't withdraw anything, so everything accumulated stays at his available balance).
Day 01: Principal = 50.00; interest = 50.00*0.005 = 0.2500; available = 0.00
Day 02: Principal = 50.25; interest = 50.25*0.005 = 0.2512; avaliable = 0.00
Day 03: Principal = 50.50; interest = 50.50*0.005 = 0.2525; available = 0.00
And so on...
As the available balance stays zero thru 30 business days, the principal grows exponentially as
Principal = Principal_initial * (1.005 exponent Days)
After the 30 day period the total principal equals to
50 * (1.005 exponent 30) = 58.07
If the member sets compounding to 0% reaching the maturity, the whol picture will be as follows:
Day 31: Principal = 8.07; interest = 8.07*0.005 = 0.0403; available = 50.00
Day 32: Principal = 8.07-0.2500=7.82; interest = 7.82*0.005 = 0.0391; available = 50.00+0.2500+0.0403=50.29
Day 33: Principal = 7.82-0.2512; interest = 7.57*0.005 = 0.0378; available = 50.29+0.2512+0.0378=50.58
And so on ... (while calculating some rounding off was made).
Above is the algorithm of transferring of the coumpounding onto the state of being available - it is calculated as a separate mini-principal each, with its own maturity period. So, a coumpound of the 15th day will become available in 15+30 days (for Demo portfolio), if counted from the initial principal deposit date.
Current yields are accrued, based on SUMMARIZED principal on the some day, i. e. all deposits in a given currency PLUS all compounds that come into effect by this very day.