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Greetings SF,

Amount in the Account = $10.00
Anual Interest rate = %3.80
Current Interest Rate = %3.735

One, I'm inexperienced in all things monetary so HELP! :)

I'd use a simple interest calculation to figure out how much I'd gain in interest over a single months period right? aka
AMOUNT * RATE = interest gained?


No, the Current Interest Rate is still an annual rate. Divided by 12 should yield a month rate which is 0.31125.

Thus, to compute one month's interest would be as follows:

$10 * .0031125 = .03125 which is a little over 3 cents.

I think I'm either using the wrong equation, or I'm forgetting to consider something.

You're forgetting that even the Current Interest Rate is still an annual rate. the 3.8% is the annual Yield which factors in compounding.

Regards,
JB
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