I need to calculate compounded daily interest on an amount owed by a debtor. In B1 use this formula. 1000 and cell B2 is the annual interest rate 75 which a bank pays you.
This is the interest rate or rate of return.
We will use the FV excel formula to calculate compound interest. In B1 use this formula. Click on the Formulas tab then the Financial tab. Principal Amount 1Annual Interest Rate365 Total Years of Investment36 5.