If I borrow $100,000 at an annual interest rate of 10%, then I would have been charged $10,000 at the end of one year.
However, I want the interest to be calculated daily and compound. If I simply take the interest rate divided by 365 (which is around 0.0274%) and apply that each day, I end up with a total of $10,515.58 of interest charged at the end of the period.
What is the Excel formula I can use to apply compounding daily interest and end up with $10,000 charged at the end of 365 days?
Similarly, what is the Excel formula for calculating a compounding weekly interest rate that I can use to apply weekly interest and end up with $10,000 charged at the end of 52 weeks?