Daily Compound Interest calculations:
Guys, if someone is looking for daily compound interest calculations in SAP FICA environment…here you go. SAP AG recently developed and released OSS note based on my requirement…please see the OSS note 1815671.
Thank you,
Chinna Katireddy
1.) Daily Compound Interest formula for Leap Year:
Amount*(((1+(Interest rate/number of days in a year))^number of days in a month)-1)
For ex:
Principal Amt Due : $10,000.00
Annual Interest rate : 9% (0.09)
Number of days in a Year : 366
Interest Calculation period : Oct 2012
Daily Compound formula : $10,000*(((1+(0.09/366))^31)-1)
2.) Daily Compound Interest formula for Non-Leap Year:
Amount*(((1+(Interest rate/number of days in a year))^number of days in a month)-1)
For ex:
Principal Amt Due : $10,000.00
Annual Interest rate : 9% (0.09)
Number of days in a Year : 365
Interest Calculation period : Jan 2013
Daily Compound formula : $10,000*(((1+(0.09/365))^31)-1)