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 CalculationsRequired 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 RMDs must start being withdrawn no later than April 1 of the year following the year the account holder turns 70 1/2.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 >Interest expense is calculated as the interest rate multiplied by the amount of the outstanding principal of the debt. Defined by Investopedia, interest expense is the cost incurred by an entity on borrowed funds.
Full Answer >The 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 >The compound annual growth rate, or CAGR, of an investment is calculated by dividing the ending value by the beginning value, taking the quotient to the power of one over the number of years the investment was held and subtracting the entire number by one. Then, turn the answer into a percentage from decimal form. The CAGR allows you to see an investment without all the ups and downs as if it had grown at an even, steady pace over the years.
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