Calculating monthly values for a certificate of deposit.
"thehed" wrote:
On Aug 9, 10:38 am, "Fred Smith" wrote:
=fv(IntRate,(today()-PurchaseDate)/365,0,-InvestAmount)
Interest is compounded monthly...I double checked.
But the key question is: how is the interest rate specified? Do you have a
nominal rate, sometimes called the annual percentage rate (APR)? Or do you
have a compounded rate, usually called the annual percentage yield (APY)?
If you have an APY, Fred's formula should be adequate, regardless of the
compounding frequency.
PS: But instead of TODAY(), I would put the date into a cell. Usually, I
do not want the date to change every time I open the workbook, but only on
particular days, e.g. the first or last day of the month.
----- original message -----
"thehed" wrote in message
...
On Aug 9, 10:38 am, "Fred Smith" wrote:
It's a simply future value calculation. The only complication would be the
compounding period, which I doubt is monthly -- it's more likely annual.
If
so, use:
=fv(IntRate,(today()-PurchaseDate)/365,0,-InvestAmount)
Regards,
Fred
Interest is compounded monthly...I double checked.
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