reverse compound interest

angstrom

New Member
Joined
Apr 7, 2018
Messages
2
Hi, I need a formula to calculate a daily compound interest rate where I know the initial value and the present value. For example, if in a week an investment increased by 30% (let's say $100 becomes $130), how would I display the daily compound interest, ie by what percent did it increase each day over 7 compound periods?
I've tried using the NOMINAL function but can't get a sensible result.
Most grateful for any help!
 

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Try:-
let "x" be the daily rate"
100 X (1+x)^7 =130

(130/100)^(1/7)= 1+x


x=[(130/100)^(1/7)]-1


x=3.8%
 
Last edited:
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Welcome to Mr Excel

30% increase in 7 days
Daily Rate = 1,3^(1/7)-1
Daily Rate = 0,0381919 --> 3,81919%

M.
 
Upvote 0
Hey Mick and Marcelo, thanks for that - two versions of the same idea - just what I wanted, works perfectly!
 
Upvote 0
Check out Excel's financial functions.


Excel 2010
ABC
1Initial100
2Days7
3Final130
4Rate3.82%
5Days4116.17
7b
Cell Formulas
RangeFormula
B4=RATE(7,0,B1,-B3)
C5=FV(B4,B5,0,-B1)
Named Ranges
NameRefers ToCells
Rate='3aa'!$B$2
 
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