Bank Formula for CD that is compounded daily for five years
Does any one how to make a formula in Excel 2002 for a CD
rate of 3.6@ that goes for 5 years and the interest is compounded daily. What would be the total at the end of the five years. The other part of this if the intersst were sent to the bank at the end of each month. how much would it be per month. I have the formula set all but the compounded daily part. Thanks for any help. TC |
Bank Formula for CD that is compounded daily for five years
The daily rate is computed this way.
=(1.036)^(1/365)-1 I used this formula to get the value after 5 years, assuming 365 days per year, for a $1000 CD. =FV(0.036/365,365*5,0,-1000) If you receive the interest at the end of each month, then it isn't reinvested and isn't compounding, is it? With the 1st formula above in A1, for a $1000 CD, I calculate about $2.91 in interest after 30 days. =1000*((1+A1)^30-1) On Sun, 26 Sep 2004 13:27:13 -0700, "TC" wrote: Does any one how to make a formula in Excel 2002 for a CD rate of 3.6@ that goes for 5 years and the interest is compounded daily. What would be the total at the end of the five years. The other part of this if the intersst were sent to the bank at the end of each month. how much would it be per month. I have the formula set all but the compounded daily part. Thanks for any help. TC |
Bank Formula for CD that is compounded daily for five years
I will word on it tomorrow. thank you so much for your help. *** Sent via Developersdex http://www.developersdex.com *** Don't just participate in USENET...get rewarded for it! |
Bank Formula for CD that is compounded daily for five years
I'm working on something for my father-in-law and my self and wife. My father-in-lsw wants the month every month but if we did it no it would stay put. So no and yes to your question. So so much for all your help. *** Sent via Developersdex http://www.developersdex.com *** Don't just participate in USENET...get rewarded for it! |
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