"Alex Simmons" wrote in message
...
On Apr 12, 8:24 pm, "DB." wrote:
Here in UK, banks seeking depositors must (for comparison purposes)
quote the AER (Annual Equivalent Rate) for each type of account they
offer. So that although interest may be earned daily the AER tells us
what the accrued daily interest will total in a year's time. Thus
£2,000 invested on Jan.1st in an account offering 5.5% AER will have
£110 added a year later.
I wish to know what interest my deposit will have earned should I
close the account early. So:
In A1 I put the sum deposited.
In A2 I put the AER (as a percentage).
In A3 I put the number of days the money will have been in the
account.

What must I put in A4 to calculate the interest I might expect?

TIA for any (all) reply (replies). As an old dog, slow at learning new
tricks, I regard you who answer our questions on this ng as geniuses!

--
DB.

As AER is compounded daily, the daily interest is the 365th root of
the AER, i.e. DailyInterest^(365)=AER.

So your formula in A4 should read =A1*(A2^(A3/365)), if in A2 your AER
is expressed as a multiplier (ie 5.5% = 1.055).

If the cell is formatted as a percentage, then you need
=A1*((A2+1)^(A3/365))

Put in days=365 to check that this works and gives the AER.

Hope this helps


My, that was quick! Yes, it works (of course!) Very many thanks!
From a reply to a recent posting here I've learned how to put in my
deposit and withdrawal dates to calculate the 'days in' I'll need in
cell A3 (above). I'm learning!

--
DB.