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Daily Compound Interest Formula

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,

Related Calculators
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Daily Compound Interest Problems

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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
 

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