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how to calculate daily compound interest formula. You need the beginning value interest rate and number of periods in years. How to calculate compound interest A the future value of the investment P the principal investment amount r the interest rate decimal n the number of times that interest is compounded per period t the number of periods the money is invested for.
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A P 1 rn nt Where. To compute the compound interest in Excel for different time periods all you have to do is convert the formula above into a relatable formula in Excel. In the formula A represents the final amount in the account after t years compounded n times at interest rate r with starting amount p.
To speed up the process you could choose to compound your interest daily rather than quarterly or yearly.
The following table shows how 10000 invested for a year at a 23 APR earns interest over the course of a year at different compounding frequencies. We have to divide interest rate with 365 to get a daily interest rate. Below is the compound interest formula on how to calculate compound interest. Using the compound interest formula calculate principal plus interest or principal or rate or time.
