Length of Term in days Daily Reinvest Rate. Use Daily Simple Interest Calculator to calculate the interest on a daily simple interest loan. For example lets say that your brother decides not to replace his old car and instead invests the 2000 proposed down payment earning 35 percent interest.
Compound interest is the total amount of interest earned over a period of time taking into account both the interest on the money you invest this is called simple interest and the interest earned or charged on the interest youve previously earned.
It can be handy to visualize compound interest by creating a simple model in Excel that shows the growth of your investment. R Annual Nominal Interest Rate as a decimal. T log AP log 1rn n log 2 log 1 01 4 4 702 years. Launch your preferred spreadsheet such as Microsoft Excel.