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#1
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Compound Interest
Is there a formula that will calculate compound interest? Assuming 4%
interest each period, I can put the original dollar amount in cell A1, then in cell B1 enter =sum(A1*.04)+A1, then in cell C1, =sum(B1*.04)+B1, etc., eventually arriving at the final answer but it takes up a lot of cells and is pretty clunky. |
#2
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Compound Interest
=A1*(1.04)^n
where n is the number of years/periods you want "Robert" wrote: Is there a formula that will calculate compound interest? Assuming 4% interest each period, I can put the original dollar amount in cell A1, then in cell B1 enter =sum(A1*.04)+A1, then in cell C1, =sum(B1*.04)+B1, etc., eventually arriving at the final answer but it takes up a lot of cells and is pretty clunky. |
#3
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Compound Interest
Robert,
Maybe =investment_ammount*(1+interest_rate)^investment_p eriods so £1000 for 1 year @ 4% =1000(1+.04)^1 Mike Mike "Robert" wrote: Is there a formula that will calculate compound interest? Assuming 4% interest each period, I can put the original dollar amount in cell A1, then in cell B1 enter =sum(A1*.04)+A1, then in cell C1, =sum(B1*.04)+B1, etc., eventually arriving at the final answer but it takes up a lot of cells and is pretty clunky. |
#4
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Compound Interest
If the 4% is per period then both Sam and Mike are on track. However, if the
4% is per year and your conversion period is less than or more than one year, you result will be in error. The annual percentage rate must be converted to a rate per period. For 4% per year with monthly conversion, .04/12 = .00333 per period and quarterly conversion .04/4 = .01 per period. "Robert" wrote: Is there a formula that will calculate compound interest? Assuming 4% interest each period, I can put the original dollar amount in cell A1, then in cell B1 enter =sum(A1*.04)+A1, then in cell C1, =sum(B1*.04)+B1, etc., eventually arriving at the final answer but it takes up a lot of cells and is pretty clunky. |
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