Calculating Daily Interest Rate from APR

[Rams_]

Question in the title really, is there an excel function to calculate a daily interest rate from an APR? The APR is compounded daily, maybe there is another way?

Thanks

 

[Richard Schollar]

You after something like the following:
<b>Sheet1</b><br /><br /><table border="1" cellspacing="0" cellpadding="0" style="font-family:Arial,Arial; font-size:10pt; background-color:#ffffff; padding-left:2pt; padding-right:2pt; "> <colgroup><col style="font-weight:bold; width:30px; " /><col style="width:64px;" /><col style="width:172px;" /></colgroup><tr style="background-color:#cacaca; text-align:center; font-weight:bold; font-size:8pt; "><td > </td><td >H</td><td >I</td></tr><tr style="height:17px ;" ><td style="font-size:8pt; background-color:#cacaca; text-align:center; " >5</td><td style="text-align:right; ">10%</td><td >Effective rate (APR)</td></tr><tr style="height:17px ;" ><td style="font-size:8pt; background-color:#cacaca; text-align:center; " >6</td><td style="text-align:right; ">0.0261%</td><td >Daily rate</td></tr><tr style="height:17px ;" ><td style="font-size:8pt; background-color:#cacaca; text-align:center; " >7</td><td style="text-align:right; ">9.5323%</td><td >Nominal Daily Rate</td></tr><tr style="height:17px ;" ><td style="font-size:8pt; background-color:#cacaca; text-align:center; " >8</td><td > </td><td > </td></tr><tr style="height:17px ;" ><td style="font-size:8pt; background-color:#cacaca; text-align:center; " >9</td><td style="font-weight:bold; ">Proof</td><td > </td></tr><tr style="height:17px ;" ><td style="font-size:8pt; background-color:#cacaca; text-align:center; " >10</td><td style="text-align:right; ">100</td><td >Initial Investment - for 1 year</td></tr><tr style="height:17px ;" ><td style="font-size:8pt; background-color:#cacaca; text-align:center; " >11</td><td style="text-align:right; ">110</td><td >Payment at maturity</td></tr></table><br /><table style="font-family:Arial; font-size:10pt; border-style: groove ;border-color:#00ff00;background-color:#fffcf9; color:#000000; "><tr><td ><b>Spreadsheet Formulas</b></td></tr><tr><td ><table border = "1" cellspacing="0" cellpadding="2" style="font-family:Arial; font-size:9pt;"><tr style="background-color:#cacaca; font-size:10pt;"><td >Cell</td><td >Formula</td></tr><tr><td >H6</td><td >=(1+H5)^(1/365)-1</td></tr><tr><td >H7</td><td >=H6*365</td></tr><tr><td >H11</td><td >=H10*(1+H6)^365</td></tr></table></td></tr></table>

 

[Rams_]

How come you don't multiply H6 by 100 like you do in the APR formula?

 

[Richard Schollar]

It's already a percentage so need to multiply it by 100. Maybe I misunderstood your question?

 

[Antonio Toledo]

Because the cell is formatted as % so you don't need to scale it with 100.

Another question though, the amount of days in a year, 365, do interest rates include holydays etc?