Excel formula to convert per-annum interest rate to compounding daily and weekly rates

The compound interest formula is:

I = P(1 + r)^n - P

I is interest
P is principal
r is rate
n is the number of interest periods incurred

Your original equation turned into: 10000 = 100000(1 + .1)^1 - 100000

To find your daily rate after a year where your principle is 100,000 and your interest is 10,000 use

r = ((I + P)/P)^(1/n)-1

((10000 + 100000)/100000)^(1/365)-1 gives you a daily rate of 0.0261158%
Similarly, the weekly rate is 0.1834569%

To find your rate using the annual interest rate (represented by i):

r = (1+i)^(1/n)-1

(1+.1)^(1/365)-1 gives you a daily rate of 0.0261158%
Similarly, the weekly rate is 0.1834569%

The excel equation to calculate your compound interest rate based on the annual rate is:

=POWER((1+A1),(1/B1))-1

Where:
A1 is your annual rate
B1 is the number of interest periods

The formula you want is

=NOMINAL(10%,365)

=NOMINAL(10%,52)

for daily or weekly interest

Form Excel help: Returns the nominal annual interest rate, given the effective rate and the number of compounding periods per year.

There's no need to use the POWER() formula. One can simply input the equation normally, e.g.

=(1+0.1)^(1/365) equals 1.000261158

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