15% comnpounded daily interest at 365 days. what is the effetive rate?

Question

How do I work out 1.15 interest to the power of 365?

Answer 1

15% per annum is 15/365% daily. So the effective rate after a year is (1+0.15/365)^365-1=0.1618=16.18%.

Comments

If you don't have a calculator that raises numbers to any power, you can work this out using logs and basic calculator functions. First, use your calculator to calculate 1+0.15/365=1.000411 approx. find the log of this=1.7844*10^-4, multiply by 365=0.06513, then find the antilog (10^0.06513)=1.1618 and subtract 1=0.1618.