Expert: Gina Boykin - 9/7/2007

Question
Hi,
I have been trying to find the right calculator all over the net with no luck. I am in a money market that has a 7 day yield that fluctuates from 4.9 to 4.5 weekly. I receive a dividend once a month even though it the yield is calculated weekly. What I want to know is how do I find a calculator to fit my needs or can you give me the formula for it?


Answer
I am unaware of a calculator that is that detailed.  You can set up a spreadsheet, though, in excel.  Create a formula with the interest rate divided by 52 (for week) multiplied by your principal.  This will give you the interest (in $).  Add this amount to your initial principal and you'll have your new principal.  Then just copy the formula down the page.  For the dividend, you can add another row after each 4 rows (if each row is a week).  It may be a little cumbersome, but will get you the information you need.

Good luck!