- 1). Determine the amount of money earning interest. This is the amount deposited in the bank account or the amount borrowed. For example, if a person has $500,000 in a savings account, the amount earning interest is $500,000.
- 2). Determine the interest rate on the account or amount borrowed. Using the example above, assume the savings account earns 5 percent interest.
- 3). Multiply the interest rate by the amount earning interest. In our example, $500,000 times 5 percent equals $25,000. This is the yearly interest.
- 4). Multiply the yearly interest by 1/365. In our example, $25,000 times 1/365 equals $68.50. This is the daily interest.
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