The rate of interest compounded daily means, the per annum interest rate is divided by the number of days while calculating the total amount should be paid after a given period.
The formula for calculating the amount to be paid after a given period for compounding rate of interest is given by:
A = P (1 + r/n)(nt)
A = Total amount after compound interest is applied
P = Trincipal deposit or loan amount
r = The annual rate of interest (expressed as a decimal)
n = The number of times that interest is compounded per year
t = Time period (in years)