There are some instances were (1.05^(1/365)-1) is the correct interest rate
to be used - it all depends if you are dealing wth nominal or effective
interest rates.

Granted that .05/365 is used in more cases than what I posted - but one
needs to know which rate to use...

--
Wag more, bark less


"Bernie Deitrick" wrote:

Rick

You need to use the annual rate divided by the number of periods. For example, with a 5% annual
rate

Annual:
=FV(0.05,1,0,1000,1)

Monthly:
=FV(0.05/12,12,0,1000,1)

Daily:
=FV(0.05/365,365,0,1000,1)

All the financial functions work the same general way.

HTH,
Bernie
MS Excel MVP


"RickS" wrote in message
...
I see the formula for calculating annually compounded interest. Is there a
function formula for daily compounding of interest?

RickS