Prorated amounts are calculated by dividing the cost of a service by the number of days in the service period, according to Lucas Hall from Landlordology. The resulting number is then multiplied by the number of days the service is used to find the prorated amount.
Know MoreThe term "prorate" comes from the Latin "pro rata," which means "in proportion," according to Wikipedia. Prorated amounts typically apply to rent, insurance and other services that are paid for a specified time period. When an insurance policy is canceled, the prorated amount due is calculated by dividing the number of days used in the policy period by the total number of days for the policy. The result is multiplied by the policy premium to calculate the prorated amount due.
Learn more about Financial CalculationsThe hourly rate of pay is calculated by dividing the gross salary for a specific period by the number of hours worked in that same period. Gross salary is the amount earned prior to any deductions.
Full Answer >Loan interest rates can be calculated with a loan amortization calculator and by knowing whether interest rates are fixed or variable, according to About.com. These methods can help borrowers understand their monthly payments, how much of the payment consists of interest, and how much future payments are.
Full Answer >Required minimum distributions, or RMDs, from an IRA are calculated by dividing the year-end value of the IRA by the distribution period determined by the IRS, according to BankRate. RMDs must start being withdrawn no later than April 1 of the year following the year the account holder turns 70 1/2.
Full Answer >Median income is calculated by identifying the middle value in a set of incomes as long as the set of incomes is in ascending order, according to Concept Stew. With an even number, the median is calculated by averaging the two numbers in the middle of the set.
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