# Calculation of compound interest in excel sheet

##### 2019-08-19 05:27

The Excel compound interest formula in cell B4 of the above spreadsheet on the right once again calculates the future value of 100, invested for 5 years with an annual interest rate of 4. However, in this example, the interest is paid monthly. This formula returns the result 122. .To calculate the monthly compound interest in Excel, you can use below formula. Principal Amount((1Annual Interest Rate12)(Total Years of Investment12))) In above example, with of principal amount and 10 interest for 5 years, we will get. calculation of compound interest in excel sheet

How to calculate compound interest in Excel. One of the easiest ways is to apply the formula: (gross figure) x (1 interest rate per period). If you are investing 1, 000 with a 15 interest rate, compounded annually, below is how you would calculate the value of your investment after one year.

## Calculation of compound interest in excel sheet free

Apr 17, 2018 Although Microsoft Excel does not include a function for determining compound interest, you can use the following formula for this calculation PV(1R)N where PV is present value, R is the interest rate, and N is the number of investment periods. Or let's say, 100 is the principal of a loan, and the compound interest rate is 10. After one year you have 100 in principal and 10 in interest, for a total base of 110. In year two, the interest rate (10) is applied to the principal (100, resulting in 10 of interest)calculation of compound interest in excel sheet R the annual interest rate. Note that the rate needs to be in percentage in Excel. For example, when the compound interest is 10, use 10 or. 1, or as R. T the number of years. N Number of time interest is compounded in a year. In the case where the interest is

Calculate compound interest. 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: calculation of compound interest in excel sheet Compound interest formula for Excel: If you want to know how much your investment will be worth at an 8 annual interest rate compounded quarterly, simply enter 4 in cell B5: To calculate the future value of your investment with semiannual compounding, enter Related formulas. 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 To calculate annual compound interest, you can use a formula based on Compound Interest. 2. Now this interest (8) will also earn interest (compound interest) next year. How much will your investment be worth after two years at an annual interest rate of 8? The answer is 116. 64. 3. How much will your investment be worth after 5 years? Simply drag the formula down to cell A6. The answer is 146. 93. Compound interest is the interest thats calculated both on the initial principal of a deposit or loan and on all previously accumulated interest. In this article, we are going to learn the compound interest formula in Excel.

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