Hi,
I'm having trouble with an Excel financial function mainly because I don't
really understand the financial jargon that is being used to explain it.
I want to check that
a) I am using the right function and then
b) that I'm using it correctly.

I'll try to explain the situation in layman's terms :

My friend, Mr X, placed some money in a current account in the bank where
his money gains no interest.

I told him he'd be better off using a savings account where
- even if the interest is small -
he would make a serious benefit in the long term because
the amount in there is quite important and
it stays in over a long period.
So now I'm trying to prove this to him using Excel.

The interest is calculated from day to day.
So I'm using the ACCRINTM function calculating (or so I hope)
the interest accrued between two movements.

Let's say the savings account pays an annual rate of 3.5% and is
1. Opened on Jan 1st with 1000 Euros.
2. On Jan 15 , I pay a bill for 500 Euros.
3. On Jan 30th, I receive a cheque for 400 Euros.

I'm recording each movement on a row by row basis,
using for "issue" the date of the movement,
using for "settlement" the date of the next movement,
using for "par" the balance remaining in the account between the two
movements,
and on the last row, for the "settlement" I use todays date.

ACCRINTM ( Date(2008; 01;01) ; Date(2008; 01;15) ; 3.5% ; 1000 ; 4 )
ACCRINTM ( Date(2008; 01;15) ; Date(2008; 01;30) ; 3.5% ; 500 ; 4 )
ACCRINTM ( Date(2008; 01;30) ; Date(... Now ) ; 3.5% ; 900 ;
4 )

Then I sum all the results and I tell Mr X that that's the amount he lost!
But am I right?

TIA

Nth