How is interest calculated for the Hedonova wallet?

## What is a Hedonova wallet?

The Hedonova Wallet is more than just a digital wallet; it's a way to manage and grow your money effortlessly. It serves as a dynamic savings account, seamlessly allowing users to move funds between their wallet, Hedonova's main fund, co-investments, and linked bank accounts.

## Features of Hedonova wallet

* **Competitive interest rate:** Earn a solid 5% annual interest on your monthly average balance, helping your savings grow over time.
* **Flexibility:** Access your funds whenever you need them, without facing lengthy withdrawal processes or hidden fees.
* **User-friendly interface:** Enjoy an intuitive and easy-to-use platform, making managing your finances a breeze.

## What makes it different from other wallets in the investing space?

Unlike traditional savings accounts with minimal interest rates, it offers a competitive rate, empowering users to maximize their savings without sacrificing accessibility. Plus, with instant access to funds and no hidden fees, it prioritizes user convenience.

## How is the wallet interest calculated at Hedonova?

Let's dive into how we calculate wallet interest using a simple example.\
\
**Example**

Suppose you have been diligently maintaining your balances over the past few months. Here are the monthly average balances you've maintained:

* January: $10,000.00
* February: $12,000.00
* March: $5,600.00

Now, let's walk through the steps to calculate the interest earned for each month.

## Step 1: Determine the number of days in each month

Considering the number of days in each month is essential, as it affects the interest calculation. Here are the days for the months

* January: 31 days
* February: 28 days
* March: 31 days

## Step 2: Calculate the monthly average balance

To find the monthly average balance for each month, we sum up the daily closing balances and divide by the number of days in that month.

For instance, in January, if your wallet had a closing balance of $10,000.00, the monthly average would simply be $10,000.00.

## Step 3: Plug values into the interest formula

Using the formula provided, we calculate the interest for each month:

Interest = (Monthly Average Balance \* 0.05 \* Days in the month) / 365\
\
**Let's take January as an example:**

Interest = (10000 \* 0.05 \* 31) / 365 ≈ $42.67

This means that for January, with a monthly average balance of $10,000.00, you'd earn approximately $42.47 in interest.

## Step 4: Repeat for each month

We repeat this process each month using the respective monthly average balances and the number of days each month.

Here are the calculated interests for each month:

* January: $42.47
* February: $47.67
* March: $23.78

Following these steps lets you understand how your wallet interest is calculated at Hedonova.

Remember, while these numbers are based on a hypothetical scenario, they illustrate the straightforward process we use to ensure you earn interest on your wallet balances.

## How is the monthly average balance calculated at Hedonova?

Let's understand the process of calculating the monthly average balance at Hedonova using a simple example

**Example**

**Suppose you have been diligently tracking your wallet balances throughout June 2020. Here are the daily closing balance**

| Date         | Closing Balance |
| ------------ | --------------- |
| 01 June 2020 | 115.69          |
| 02 June 2020 | 115.08          |
| 03 June 2020 | 115.04          |
| 04 June 2020 | 118.43          |
| 05 June 2020 | 120.12          |
| 06 June 2020 | 123.80          |
| 07 June 2020 | 123.06          |
| 08 June 2020 | 123.23          |
| 09 June 2020 | 123.05          |
| 10 June 2020 | 128.04          |
| 11 June 2020 | 127.81          |
| 12 June 2020 | 126.91          |
| 13 June 2020 | 125.64          |
| 14 June 2020 | 126.50          |
| 15 June 2020 | 126.88          |
| 16 June 2020 | 126.08          |
| 17 June 2020 | 130.43          |
| 18 June 2020 | 128.46          |
| 19 June 2020 | 129.20          |
| 20 June 2020 | 129.12          |
| 21 June 2020 | 132.13          |
| 22 June 2020 | 132.54          |
| 23 June 2020 | 132.95          |
| 24 June 2020 | 132.62          |
| 25 June 2020 | 133.13          |
| 26 June 2020 | 133.54          |
| 27 June 2020 | 133.03          |
| 28 June 2020 | 132.39          |
| 29 June 2020 | 132.14          |
| 30 June 2020 | 131.89          |



Monthly Average Balance = Sum of closing balance/ (# of days in the month)

Please note: Closing balance gets captured at midnight (USA Time)

## Step 1: Determine the number of days in June

June has 30 days.

## Step 2: Sum up the closing balance

Total Closing Balance = 115.69 + 115.08 + 115.04 + … + 131.89 = 3808.9

## Step 3: Calculate the monthly average balance

To find the monthly average balance, we divide the total closing balance by the number of days in June

Monthly Average Balance = Total Closing Balance / Number of Days in June = 3808.93 / 30 = 126.9

So, the monthly average balance for June 2020 is approximately $129.18.

By following these steps, you can accurately determine your monthly average balance.

The Hedonova Wallet offers a competitive 5% annual interest rate on the monthly average balance, coupled with flexibility and user-friendly features. Its interest calculation process is straightforward, outlined through an example, ensuring transparency for users. Similarly, calculating the monthly average balance involves summing daily closing balances and dividing by the number of days in the month. Hedonova provides a seamless financial management solution, emphasizing accessibility and earnings potential.

How is interest calculated for the Hedonova wallet?

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