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Calculating annual % interest rate, compound daily

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  1. #1
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    Question Calculating annual % interest rate, compound daily

    I need a formula that calculates the annual interest rate, compound daily, given the PV, FV and number of days, for example took a loan of $1,000 and have to repay $1,050 in 14 days.
    I need this because two employees with limited financial savvy took out payday loans during this terrible time and have to pay back extravagant (in my opinion) amounts. My country has laws against this type of exploitation - so I want to calculate the annual interest rate, and also have a tool handy to warn any other wanting to go the same route.

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    Re: Calculating annual % interest rate, compound daily

    I'm not a financial person but compound interest rate can be determined by
    =(FV/PV)^(1/n) -1
    for your example, that gives a daily compounded interest rate of 0.003491

    Then you can use Excel's FV function with this value as the interest rate and 365 as n.

    Would that give you what you need?
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  3. #3
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    Re: Calculating annual % interest rate, compound daily

    Thanks, will give it a go

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