compounding variable daily interest

[lod]

Hello,
Im new to this forum. I tried searching for a suitable answer, but couldn't find one.

I'm trying to create a worksheets that starts with an initial amount and then calculate compounding daily variable interest rate
so, as I receive a daily interest rate, I can enter it in a column and it will show me a new running total on a daily basis.
Sorry if this sounds really basic, but I'm a complete Excel beginner.

Thankyou in advance for your help.

 

[MARK858]

In really basic terms you are looking at something like

=A3*A4/365*(A6-A5)

where

A3=Capital
A4=Interest Rate
A5=Start Date
A6=End Date

But if you are dealing with a bank account you need to find out how they apply the interest on the interest daily/monthly/yearly etc. They normally make it much more complicated than the above.

 

[MARK858]

Or for a much better explanation and formula have a look at
http://www.eduworks.com/Documents/Workshops/EdMedia1998/class/compound.htm

 

[lod]

That's great. Many thanks for your help and quick reply.