How do I calc interest when using multiple dates within a given ye

[MrTaxGuy]

I am trying to calculate interest using 2 interest rates in 1 calendar year.
Example:
Lets say that from January 1, 2005 through June 30, 2005 the interest rate
is 5 percent and the interest rate from July 1, 2005 through December 31,
2005 is 2 percent. How much interest is due on $1000.00 if the accrual date
starts on 03/01/2005 and is paid on 09/09/2005?
Currently, I have a formula that will calculate interest for a given year as
long as the interest rate does not change mid-year.

[Bob Phillips]

response in .programming

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HTH

Bob Phillips

"MrTaxGuy" <[email protected]> wrote in message
news:[email protected]...
> I am trying to calculate interest using 2 interest rates in 1 calendar
year.
> Example:
> Lets say that from January 1, 2005 through June 30, 2005 the interest rate
> is 5 percent and the interest rate from July 1, 2005 through December 31,
> 2005 is 2 percent. How much interest is due on $1000.00 if the accrual
date
> starts on 03/01/2005 and is paid on 09/09/2005?
> Currently, I have a formula that will calculate interest for a given year
as
> long as the interest rate does not change mid-year.
>

[GeorgeF]

Mr TaxGuy
You have presented a reduced question from a more general topic. However, if this is your question and is based on SIMPLE Interest (no compounding), then the interest charge is:
1000*(.05+.02)/2 or $35
I hope this is what you were asking. GeorgeF