Change the values in B2, B3, B4 and B5 to your specific problem.Ĭopy and paste this table into spreadsheets as explained in the above section. If you paste this correctly you should see the answer Accrued Amount (FV) = 11,611.84 in cell B1. In this example we start with a principal investment of 10,000 at a rate of 3% compounded quarterly (4 times a year) for 5 years. Calculate Accrued Amount (Future Value FV) using A = P(1 + r/n)^nt You can modify the formulas and formatting as you wish. Using Control + C and Control + V Paste the copied information into cellĪ1 of your spreadsheet. Be sure all text inside the table is selected. Drag your mouse to the outside of the lower right corner. To copy correctly, start your mouse outside the table upper left corner. Use the tables below to copy and paste compound interest formulas you need to make these calculations in a spreadsheet such as Microsoft Excel, Google Sheets and Apple Numbers. Substituting in e from our definition above:Īnd finally you have your continuous compounding formula.Įxcel: Calculate Compound Interest in Spreadsheets ![]() Showing the work with the formula r = n((A/P) 1/nt - 1): Time (t in years): 2.5 years (30 months equals 2.5 years).The calculator will use the equations: r = n((A/P) 1/nt - 1) and R = r*100. In the calculator above select "Calculate Rate (R)". If your local bank offers a savings account with daily compounding (365 times per year), what annual interest rate do you need to get to match the rate of return in your investment account? Say you have an investment account that increased from $30,000 to $33,000 over 30 months. T = ln(A/P) / r How to Use the Compound Interest Calculator: Example The tables below show the compound interest formula rewritten so the unknown variable is isolated on the left side of the equation. The basic compound interest formula A = P(1 + r/n) nt can be used to find any of the other variables. ln = natural logarithm, used in formulas belowĬompound Interest Formulas Used in This Calculator.Divide your partial year number of months by 12 to get the decimal years. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |