To calculate daily interest, you may take the principal balance from any point in time on a loan to determine what the daily interest is.
Daily Interest = Balance x Interest Rate / Days of the Year
Example: If you have a $6500.00 loan, with an interest rate of 16.85%, and your current balance is $3700.00.
Step 1: Multiply the Balance by the Interest Rate (Move the decimal 16.85 to .1685) 3700 x .1684 = 623.45
Step 2: Divide the answer to Step 1 by 365:
623.45/365 = 1.708082191780822
Daily Interest = $1.71 (round up when the third number is 5 or higher)
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