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What is the formula to calculate the daily and monthly interest for a CD with interest that accrues daily and compounds monthly?
Wiki User
∙ 13y ago
Because different months have different amount of days, the formula varies. If it's monthly, you take your principal (P), times your interest rate (R), divided by 12 months in a year. Thus, P*R/12= monthly interest rate.
Answer edited by Macintoast 6/13/2009: I am not a banker and I don't know the correct answer to your question off hand. I do know that the answer above is overly simplistic and inaccurate because it only gives you the approximate NON-compounded monthly interest rate and does not fully answer the question. The correct answer to the question is a longer formula with variables and parentheses, so you'll recognize it when you see it. Good luck.
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you are right that you are not a banker, but you are a wanker.
Wiki User
∙ 13y ago
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What is the formula to calculate simple-interest?
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