How to compound interest daily

[j5b9721]

I need a copy and paste formulia that will compound interest daily for 365
days a year showing daily totals.

 

[Mike H]

Hi,

I may be completely misunderstanding here but isn't it simply:-

Capital*daily interest rate+Capital

So would 4 columns suffice
Daily Todays
Date Capital interest Rate
01/01/2007 1000.00 =B3-B2 0.01
02/01/2007 =B2*D2+B2 =B4-B3 0.01

Drag down the formulas in columns B & C
Changes in the daily interst rate cna be shown in column D

Mike

 

[j5b9721]

Is this the correct way to input the information?

A B C D E
Daily Todays Daily
1 D/M/Y Capital interest Rate Total
2 01/01/2007 1000.00 =B3-B2 0.01 ?
3 02/01/2007 =B2*D2+B2 =B4-B3 0.01

when I stop the function it gives me a negitive # in B3.
And in the Daily interest I receive weird #s when copied
and pasted to the next line. (B,C,D )line 3 to lines 4,5,6,7

 

[Mike H]

Hi,

The column layout I used is
Col A Col B Col C Col D
Date Capital interest Rate Row 1
01/01/2007 1000.00 =B3-B2 0.01 Row 2
02/01/2007 =B2*D2+B2 =B4-B3 0.01 Row 3

The bottom column in C will show a negative value because it's looking for
tomorrows capital to work out todays interest accrued and tomorrows capital
doesn't exist until tomorrow.

Mike

 

[joeu2004]

Is this the correct way to input the information?
A B C D E
Daily Todays Daily
1 D/M/Y Capital interest Rate Total
2 01/01/2007 1000.00 =B3-B2 0.01 ?
3 02/01/2007 =B2*D2+B2 =B4-B3 0.01
when I stop the function it gives me a negitive # in B3.
And in the Daily interest I receive weird #s when copied
and pasted to the next line. (B,C,D )line 3 to lines 4,5,6,7

If D2 is the daily rate, then the daily interest in C2 is simply based
on the same-day beginning balance in B2. That is, C2 should be:

=B2*D2

The daily total in E2 would be:

=B2+C2

And the next-day beginning balance in B3 is simply =E2.

Alternatively (and better): eliminate either column B or E, and
simply have a column for the ending balance (E). Add a column (B) for
the day's deposits.

By the way, the daily rate is the annual interest rate divided by
365. (Note: Some banks will divide by 366 in leap years.)

In summary:

A1: D/M/Y
B1: Deposit
C1: Daily Interest
D1: Daily Rate
E1: Ending Balance

A2: 01/01/2007
B2: 1000
C2: =B2*D2
D2: =3.65%/365
E2: =B2+C2

A3: =A2+1
B3: blank
C3: =(E2+B3)*D3
D3: =365%/365
E3: =E2+B3+C3

Copy A33 down. Note that 3.65% is an example annual interest rate.

A note on rounding. It is unclear when banks round the interest and
the balance: daily; or when it is posted to the account, which is
typically monthly. So the above is merely an estimate.