Daily rate: Difference between revisions
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imported>Doug Williamson (Standardise appearance of page.) |
imported>Doug Williamson (Standardise appearance of page) |
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The amount of interest compounded daily is: | The amount of interest compounded daily is: | ||
5.11 | 5.11 / 365 | ||
= 0.014%. | = 0.014%. | ||
Revision as of 12:22, 21 March 2015
The daily rate of interest (or yield) is a quoting convention for the simple interest nominal annual rate for compounding once per day.
Example
The quoted daily rate is 5.11%.
The amount of interest compounded daily is:
5.11 / 365
= 0.014%.
Not to be confused with the annual effective rate, which in this case would be:
1.00014365 - 1
= 5.24%.
