Bingo! Thanks Jos!
BTW, doesn't it matter regarding leap years? Whenever I've had to annualize something I needed to take that into consideration.
Renoir
>Renoir, the formula to calculate simple compound interest is:
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>nCompVal = nStartVal * ( 1 + i ) ^ n where
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>i=interest rate
>n=number of compounding periods
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>So a start value of 100 compounded at 10% interest for 5 period (eg take $100 and invest at 10% per annum for 5 years) would be:
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>nCompVal = 100 * ( 1 + 10/100 ) ^ 5
>? nCompVal
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>
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>Assuming my memory serves me correctly which is a big "if" :)
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>What your original formula is trying to do (I think) is first convert an annual rate to a daily rate and then compounding the nOldValue for some type of pro-rata number of days. It would be simplified by:
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>nNewValue = nOldValue * ( 1 + ( (nInterestRate/100) / 365 ) ) ^ nDays
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>But I am not sure this will give the answer required as I am not sure you can convert an annual rate to a daily rate like this?
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>>Jos,
>>
>>Y'know, I kind of thought that, but given this calculation:
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>>nNewValue = (nOldValue * ((1 + nInterestRate/(365*100))^(365 * nDays / 365)))
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>>I couldn't see what they were trying to do (other than incorrectly use 365 to annualize).
>>
>>Jay
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>>>Renoir, it is the "power to" function. Same as double asterisk **. i.e. 4^2 = 16 and 4**2 = 16
>>>
>>>
>>>>What would the "^" character do in a calculation? Can't seem to locate it anywhere.
>>>>
>>>>Renoir
