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Calculate Daily Compound Interest.

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    Calculate Daily Compound Interest.

    asset losses -10.78% in 7 days.

    How do you solve for the daily compound interest rate to get a loss of -10.78% after 7 days compounding daily?

    thanks in advance

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    Forum Expert ben_hensel's Avatar
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    Re: Calculate Daily Compound Interest.

    Compound interest formula:
    y = x * (1 + R) ^ N

    For this specific case:
    x = 1
    y = 1 - 0.1078
    N = 7
    R = ???

    solve for R

    R = POWER(y, 1/N) - 1

    Specifically:
    R = POWER(1-0.108, 1/7) - 1 = -16.16%

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    Forum Guru shg's Avatar
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    Re: Calculate Daily Compound Interest.

    = POWER(1-0.108, 1/7) - 1 = -16.16%
    Slipped a decimal, ben: -1.616%
    Entia non sunt multiplicanda sine necessitate

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    Re: Calculate Daily Compound Interest.

    Quote Originally Posted by shg View Post
    Slipped a decimal, ben: -1.616%
    Hi SHG,

    ah.. the power function..

    thanks for the formula!

    =POWER(0.8922,1/7)-1 to get -1.62%

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    Re: Calculate Daily Compound Interest.

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