Excel Formula For Compound Interest

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Excel Formula For Compound Interest

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How much will your investment be worth after 15 years at an annual interest rate of 4 compounded quarterly The answer is 18 167 Note the compound interest formula reduces to 10000 1 0 04 4 4 15 10000 1 01 60 7 Assume you put 10 000 into a In Excel, enter the general compound interest formula. All we have to do is to select the correct cell references. So, you enter; =B1* (1+B2/B4)^ (B4*B3) You will get the future value using the compound interest formula when you press “Enter” You can use the Excel template provided above as your compound interest calculator.

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Excel Formula For Compound InterestThe tutorial explains the compound interest formula for Excel and provides examples of how to calculate the future value of the investment at annual, monthly or daily compounding interest rate. You will also find the detailed steps to create your own Excel compound interest calculator. To calculate compound interest in Excel you can use the FV function This example assumes that 1000 is invested for 10 years at an annual interest rate of 5 compounded monthly In the example shown the formula in C10 is FV C6 C8 C7 C8 0 C5 The FV function returns approximately 1647 as a final result

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