>>>Hi everybody,
>>>
>>>If I have an item which cost $100 and the annual interest rate is 2% and the days of interest 10, how can I calculate the actual interest cost?
>>>
>>>Can you give me the exact formula, please?
>>
>>Interest=principal*(rate*days/36500)
>>
>>You can go at this step by step - calculate the annual interest (principal*rate/100) then multiply that with the proportionate part of the year (days/365) but the result should be the same, save for roundoff errors happening in a different order.
>
>What about leap years?

There's a dim memory from my accounting classes 40 years ago that says that banks calculate daily interest based on a 360 day year. It's a very dim memory.

If you need to consider compounding then I think the formula is

Interest =  (Principal * (1 + (( .01 * rate ) / 365 )) ^ NumDays) - Principal

>
>Also I think the interest is in actual value 0.02 (let me verify). It's Numeric 5.2, so I assume it's not in %.