Hi,

Can you help me with the calculation of Interest on compounding basis with the daily change in the rates

Chintan Mehta

Please see attached image.

The formula in C3 is =C2+((C2*(A3/100))/365). This is replicated down the spreadsheet.

Obviously you would have to put in the daily interest rate.

Hope this helps

Posted on Jul 22, 2008

interest is interest

fixed is calculated yearly on the principle and is paid 365 days time

variable changes and is calculated daily ( 1/365 part of the interest rate ) and added to the remaining principle monthly

so if you have a loan of $1000.00 on fixed interest of 10% , regardless of how much you have repaid in a 12 month period , it is 10% of the principle loaned

with a variable interest the interest rate could be 10% today, 15% in 2 months time or 6% later on

it is variable

to add to that it is calculated on a daily basis (1/365 of 10%) and added to the principle left after receiving a payment on the loan

so for a $1000.00 the interest is added to that principle at the end of the month if there is no loan repayment or is added to the principle balance after a payment

the difference is that a variable interest rate loan will allow you to save money if you pay off well before the period of the loan but will add almost 2 to 3 times the loan if you pay the absolute minimum for the period of the loan

a fixed rate is where you know exactly the total interest to be paid at the end of term

fixed is calculated yearly on the principle and is paid 365 days time

variable changes and is calculated daily ( 1/365 part of the interest rate ) and added to the remaining principle monthly

so if you have a loan of $1000.00 on fixed interest of 10% , regardless of how much you have repaid in a 12 month period , it is 10% of the principle loaned

with a variable interest the interest rate could be 10% today, 15% in 2 months time or 6% later on

it is variable

to add to that it is calculated on a daily basis (1/365 of 10%) and added to the principle left after receiving a payment on the loan

so for a $1000.00 the interest is added to that principle at the end of the month if there is no loan repayment or is added to the principle balance after a payment

the difference is that a variable interest rate loan will allow you to save money if you pay off well before the period of the loan but will add almost 2 to 3 times the loan if you pay the absolute minimum for the period of the loan

a fixed rate is where you know exactly the total interest to be paid at the end of term

May 09, 2016 | Business & Productivity Software

Credit union. Credit unions offer low interest rates and a variety of outstanding borrower benefits but you should be a members. Unity One Credit Union in Texas (Unity One Student Loans) was my choice.

Apr 25, 2016 | Business & Productivity Software

No. Capital loan doesn't have annual pay down requirement, unlike a lot of lenders.

Oct 01, 2015 | The Business & Productivity Software

You are able to switch to a principal and interest amortizing facility in order to a pursuit-in-advance facility in the finish of the fixed rate of interest term. When the payment type is transformed throughout the fixed rate of interest term, break costs might be incurred.

Jun 02, 2015 | The Business & Productivity Software

- A cash advance is a service provided by most credit card and charge card issuers. The service allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit. For a credit card, this will be the credit limit (or some percentage of it).

- Cash advances often incur a fee of 3 to 5 percent of the amount being borrowed. When made on a credit card, the interest is often higher than other credit card transactions. The interest compounds daily starting from the day cash is borrowed. The POWER OF BLOG

Apr 16, 2013 | Simply Media Simply Money & Personal...

$276,000 which would be $23,000 per month assuming annual compounding.

Oct 30, 2009 | Microsoft Office Word 2003 for PC

Try this formula=((A1)*(1+A2))-A3
Where:
A1 is the original Balance
A2 is the interest rate
A3 is the money paid for the preceding month

Apr 02, 2009 | Microsoft Excel for PC

=10000*(1+0.96)^12

=10000*(1+0.10)^18

=10000*(1+0.10)^24

=10000*(1+0.10)^18

=10000*(1+0.10)^24

Dec 02, 2008 | Microsoft Office Professional 2007 Full...

The function in Excel for calculating EMI is not EMI but PMT. It requires minimum three arguments. They are 1. Rate of interest (Rate), 2. Number of periods (Nper) and 3. Value of loan or present value (Pv) in that order, that is, PMT (Rate, Nper, Pv)
If you want to find EMI for 1 lakh at 10% annual interest for 10 years you enter the following in one of the cells:
= pmt(10%/12, 10*12, 100000)

Borrowed from http://www.hindu.com/pp/2004/02/28/stories/2004022800160500.htm

Borrowed from http://www.hindu.com/pp/2004/02/28/stories/2004022800160500.htm

Oct 13, 2007 | Microsoft Office Standard for PC

Jan 28, 2016 | Microsoft Excel for PC

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