Скачать или смотреть Daily Compound Interest (Formula) | Step by Step Calculation with Examples

In this video on Daily Compound Interest, here we discuss how to calculate daily compound interest along with its formula and practical examples.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐃𝐚𝐢𝐥𝐲 𝐂𝐨𝐦𝐩𝐨𝐮𝐧𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭?
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Daily compounded interest means interest is accumulated on a daily basis and is calculated by charging interest on the principal plus interest earned on a daily basis and hence is higher than interest compounded on a monthly / quarterly basis due to high compounding frequency.

𝐃𝐚𝐢𝐥𝐲 𝐂𝐨𝐦𝐩𝐨𝐮𝐧𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
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A=(P (1+r/n)^(nt)) – P

𝐃𝐚𝐢𝐥𝐲 𝐂𝐨𝐦𝐩𝐨𝐮𝐧𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐄𝐱𝐚𝐦𝐩𝐥𝐞
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The bank borrows a total of $5000 where the interest rate is 7% and the balance is borrowed for a term of 3 years. Let's figure out how much the bank will measure the compounded interest on the loan provided.

From above given data we get,

Principle = $5000, Annual Interest = 7%, N = 365, Time(years) = 3

By using above formula we get,

=($5000*(1+7/365)^(365*3))-$5000
= 1168.27

To know more about the 𝐃𝐚𝐢𝐥𝐲 𝐂𝐨𝐦𝐩𝐨𝐮𝐧𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/daily-...

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