i'm trying to validate a software Interest Calculation.
The defaults given are as followed.
Interval: Monthly Nominal Annual Rate: 10% Disbursal Amount: $500,000 Disbursal Date 01/01/2018 Payment Date 01/02/2018
So exactly one month between disbursal and payment
If the compute method is set to Normal (compound interest) The correct interest accrued is below
Interest Accrued for 1 month = 500,000 *.1 / 12 = 4166.67
Now if I set the compute method to be Canadian and set
Canadian Basis to Semiannual I get an interest accrued value of $4,082.42.
I'm wondering how does one get $4082.42