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#1 Help Me ! » FV - Does interest accrue in a linear fashion throughout a period? » 2016-07-08 01:47:20

Caesar07
Replies: 1

For a loan that accrues daily and compounds yearly with a 10% annual interest rate, why is 100*(1+.10)^1.5 equal to 115.369, and not 115.50?

Does the future value formula not work when trying to calculate compounded interest intra-period? Does the number of periods have to be an integer? How should one calculate accrue interest intra-period. Would I have to manually calculate the accrued partial period interest after using the future value formula for an integer number of periods?

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