How weekly amounts are extrapolated to yearly amounts in the budget

In the budget planner, payments that you make on a weekly basis may not return the expected information when extrapolated out to a full year.

For example, a weekly amount of $100 will not return a yearly amount of $5200, but instead calculate to $5217.85.

This is because Money will use an average amount of weeks per month, rather than assuming there are 52 weeks in a year.

Average days in a year are 365.25 ((365x3 + 366)/4)
Average weeks in a month are 4.34821 (365.25/(12*7))

Therefore, when calculating the total per year, Money will calculate the $100 by multiplying this by the number of weeks per month (4.34821) and then multiplying by 12, which gives $5217.85

Category: Budget

Keywords: Budget, Calculations, Month, Week, Year