![]() ![]() To stick with the example above, if you deposit $20,000 at a monthly compound interest rate of 1%, the first month would earn you $200 (1% of $20,000). That’s because compound interest grows at a faster rate than simple interest. Making regular deposits into a savings account, especially if you start early, can have a mighty snowball effect. You may have heard about "the magic of compound interest" and there’s a good reason for that. With this method, interest can grow exponentially over time, regardless of the initial amount. 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.Compound interest is the interest earned-not only on the original sum of money-but on the interest you earn as well. If you paste this correctly you should see the answer for Rate % = 2.44 in cell B1. In this example we start with a principal of 10,000 with interest of 500 giving us an accrued amount of 10,500 over 2 years compounded monthly (12 times per year). 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):
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