C
Chasmcf
Is there a template to compute interest income on a daily basis
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V
vandenberg p
You can make your own with the following formula to obtain the end of
period value:
=Beginning Principal*(1+i/365)^(365*Years)
Where i is the annual rate that you will earn compounded daily.
Years is number of years you will leave it on deposit.
Pieter Vandenberg
: Is there a template to compute interest income on a daily basis
period value:
=Beginning Principal*(1+i/365)^(365*Years)
Where i is the annual rate that you will earn compounded daily.
Years is number of years you will leave it on deposit.
Pieter Vandenberg
: Is there a template to compute interest income on a daily basis
J
joeu2004
vandenberg p said:[....]Chasmcf said:Is there a template to compute interest income on a
daily basis
=Beginning Principal*(1+i/365)^(365*Years)
Alternatively:
=FV(i/365, 365*years,, -principal)
Caveat: That is not entirely right because it does not take
leap years into account. Instead of "365*years", it would
be better to compute the number of days between two dates,
e.g. DATE(2010,12,31) - DATE(2005,12,31).
T
Troubled User
I read the follow up posts and thought I should point out that you need to
read whatever documentation about how your interest is accrued. Frequently
interest rates are based on a 360 year month and charged on a daily basis,
thus slightly increasing the interest rate that is changed. In this case you
need to divide the stated rate by 360 and then multiple the rate by the
number of days in the month.
read whatever documentation about how your interest is accrued. Frequently
interest rates are based on a 360 year month and charged on a daily basis,
thus slightly increasing the interest rate that is changed. In this case you
need to divide the stated rate by 360 and then multiple the rate by the
number of days in the month.