The exchange rate which is determined by the market forces is known as
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You can estimate using simple interest (which is reasonable for a small number of periods (5 in your example), and the rate (x in your question) being small
Simple interest is C (1 + nx). (where n is 5 in your example)
For example, investing one million dollars at 2% per annum, compounded daily for five days, the interest would be about $277.81, and the approximation would be 277.78 (off by only 0.03).
Obviously that still involves some mental math. If I had to do it in my head, I would say that the interest is about 20,000 (2% of 1,000,000) per 360 days. My period is 1/72 of a year, so my interest is 20,000/72 which I can calculate to the nearest dollar in my head in a minute.
Simple interest is C (1 + nx). (where n is 5 in your example)
For example, investing one million dollars at 2% per annum, compounded daily for five days, the interest would be about $277.81, and the approximation would be 277.78 (off by only 0.03).
Obviously that still involves some mental math. If I had to do it in my head, I would say that the interest is about 20,000 (2% of 1,000,000) per 360 days. My period is 1/72 of a year, so my interest is 20,000/72 which I can calculate to the nearest dollar in my head in a minute.
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