is there a formula for calculating daily compounding on a CD?

  • Thread starter Thread starter Guest
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Guest

i am trying to calculate daily compounding interest on a certificate of
deposit, but don't want to take up 365 lines to do so. is there formula that
can calculate it more simply?
 
assume annual rate is r (like 0.1) and compounded daily.
the APY = (1+r/365)^365-1, format as percentage.

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Yongjun CHEN
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bryantsheriff said:
i am trying to calculate daily compounding interest on a certificate of
deposit, but don't want to take up 365 lines to do so. is there formula
that can calculate it more simply?
Click to expand...

If A1 is the principal value of the CD, A2 is the annual interest rate,
and A3 is the length of the term of the CD in days, then:

=fv(A1/365, A3, 0, -A2) - A2

computes the total interest.
 
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