When a sum of money is borrowed for a period, an extra amount has to be
paid along with the borrowed money. The fixed rate of the extra amount
is called **interest**. Compound interest is the total interest that includes the original
interest and the interest of the new principal which is obtained by
adding the original principal to the due interest. For daily compound interest, the interest in compounded all the days in a year.

The **Daily Compound Interest Formula** is given as,

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Compound Daily Interest Calculator | Compound Interest Formula Calculator |

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The solved problems on daily compound interest are given below: ### Solved Examples

**Question 1: **A sum of Rs 5000 is borrowed and the rate is 8%. What is the daily compound interest for 2 years?

** Solution: **

Daily Compound Interest = Principal$(1+\frac{Rate}{365})^{365*Time}$ - Principal

Daily Compound Interest = 5000$(1+\frac{8}{100*365})^{2*365}$ - 5000

Daily Compound Interest = 5000 * 1.173 - 5000

Daily Compound Interest = 867.45

The daily compound interest for 2 years is Rs 867.45

**Question 2: **A sum of Rs 20000 is borrowed and the rate is 10%. What is the daily compound interest for 5 years?

** Solution: **

Daily Compound Interest = Principal$(1+\frac{Rate}{365})^{365*Time}$ - Principal

Daily Compound Interest = 20000$(1+\frac{10}{100*365})^{5*365}$ - 20000

Daily Compound Interest = 20000 * 1.649 - 20000

Daily Compound Interest = 12972.17

The daily compound interest for 5 years is Rs 12972.17

Daily Compound Interest = Principal$(1+\frac{Rate}{365})^{365*Time}$ - Principal

Daily Compound Interest = 5000$(1+\frac{8}{100*365})^{2*365}$ - 5000

Daily Compound Interest = 5000 * 1.173 - 5000

Daily Compound Interest = 867.45

The daily compound interest for 2 years is Rs 867.45

Daily Compound Interest = Principal$(1+\frac{Rate}{365})^{365*Time}$ - Principal

Daily Compound Interest = 20000$(1+\frac{10}{100*365})^{5*365}$ - 20000

Daily Compound Interest = 20000 * 1.649 - 20000

Daily Compound Interest = 12972.17

The daily compound interest for 5 years is Rs 12972.17