Compound Interest
 

I need to calculate how much interest would be earned betwen two dates using
daily compounding. OR the future value of a current amount using daily
compounding method.

Can't find a function that seems to work

On Thu, 10 Mar 2005 12:05:04 -0800, Ron D. <Ron
wrote:

I need to calculate how much interest would be earned betwen two dates using
daily compounding. OR the future value of a current amount using daily
compounding method.

Can't find a function that seems to work

The FV function is blind to the length of a period. So, assuming you have an
annual interest rate, just divide that by 365 or 360 to obtain the daily rate,
and use the number days between the two dates for the number of periods.

To get the amount of interest, just subtract the PV (initial investment).

Or, for just a plain formula,

=PV*(1+annual_rate/365)^(number_of_days) - PV


--ron