Daily rate

From ACT Wiki
Jump to: navigation, search

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%.


See also