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#1
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Excel formula question.
I'm trying to figure out the compound interest formula to tell me how long
it will take for investment to reach a certain amount. E.g. I have $750 that I can invest at 6%. How long will it take, compounded monthly, to reach $1000. Thanks. |
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#2
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Excel formula question.
The amount after a given number of years is given by
=750*1.06^(years) With some high school algebra you can find when this reaches $1000: =LOG(1000/750)/LOG(1.06) Jaycee wrote: I'm trying to figure out the compound interest formula to tell me how long it will take for investment to reach a certain amount. E.g. I have $750 that I can invest at 6%. How long will it take, compounded monthly, to reach $1000. Thanks. |
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#3
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Excel formula question.
...the compound interest formula...
Perhaps as an Excel Formula: =NPER(6%/12,0,-750,1000) Or: =LOG(1000/750)/LOG(1+6%/12) -- HTH :) Dana DeLouis Windows XP & Office 2003 "Jaycee" wrote in message ... I'm trying to figure out the compound interest formula to tell me how long it will take for investment to reach a certain amount. E.g. I have $750 that I can invest at 6%. How long will it take, compounded monthly, to reach $1000. Thanks. |
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#4
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Excel formula question.
=NPER(6%,0,-750,1000)
-- Kind regards, Niek Otten Microsoft MVP - Excel "Jaycee" wrote in message ... | I'm trying to figure out the compound interest formula to tell me how long | it will take for investment to reach a certain amount. | | E.g. | I have $750 that I can invest at 6%. How long will it take, compounded | monthly, to reach $1000. | | Thanks. | | |
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#5
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Excel formula question.
Multiplying this result by 12 gives 59.2 months if the annualized rate
is used. If on the other hand 6% per annum is converted to 0.5% per month the formulas is: =LOG(1000/750)/LOG(1.005) which gives 57.7 months. Lori wrote: The amount after a given number of years is given by =750*1.06^(years) With some high school algebra you can find when this reaches $1000: =LOG(1000/750)/LOG(1.06) Jaycee wrote: I'm trying to figure out the compound interest formula to tell me how long it will take for investment to reach a certain amount. E.g. I have $750 that I can invest at 6%. How long will it take, compounded monthly, to reach $1000. Thanks. |
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#6
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Excel formula question.
This is not compounded monthly; look at Dana's formula, which is.
-- Kind regards, Niek Otten Microsoft MVP - Excel "Niek Otten" wrote in message ... | =NPER(6%,0,-750,1000) | | -- | Kind regards, | | Niek Otten | Microsoft MVP - Excel | | "Jaycee" wrote in message ... || I'm trying to figure out the compound interest formula to tell me how long || it will take for investment to reach a certain amount. || || E.g. || I have $750 that I can invest at 6%. How long will it take, compounded || monthly, to reach $1000. || || Thanks. || || | | |
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#7
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Excel formula question.
Jaycee,
I prefer to use Dana's 1st formula (NPER), it falls under the financial category of excel....hope you are not confused between other formulas...more money... "Dana DeLouis" wrote: ...the compound interest formula... Perhaps as an Excel Formula: =NPER(6%/12,0,-750,1000) Or: =LOG(1000/750)/LOG(1+6%/12) -- HTH :) Dana DeLouis Windows XP & Office 2003 "Jaycee" wrote in message ... I'm trying to figure out the compound interest formula to tell me how long it will take for investment to reach a certain amount. E.g. I have $750 that I can invest at 6%. How long will it take, compounded monthly, to reach $1000. Thanks. |
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#8
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Excel formula question.
This formula still applies if the annualized rate of 0.49% per month is
used (=(1.06)^(1/12)-1). Niek Otten wrote: This is not compounded monthly; look at Dana's formula, which is. -- Kind regards, Niek Otten Microsoft MVP - Excel "Niek Otten" wrote in message ... | =NPER(6%,0,-750,1000) | | -- | Kind regards, | | Niek Otten | Microsoft MVP - Excel | | "Jaycee" wrote in message ... || I'm trying to figure out the compound interest formula to tell me how long || it will take for investment to reach a certain amount. || || E.g. || I have $750 that I can invest at 6%. How long will it take, compounded || monthly, to reach $1000. || || Thanks. || || | | |
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#9
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Excel formula question.
indeed correct, yet in excel, where forum viewer's are amazed on acrobatics,
they may catch the acrobatic of short or boolean shortcuts, but the real world sense in computing are categorized and every thing is subject to auditing, via excel defined functios...hope we do not misguide the real end users..especially those working in financing sector... "Lori" wrote: This formula still applies if the annualized rate of 0.49% per month is used (=(1.06)^(1/12)-1). Niek Otten wrote: This is not compounded monthly; look at Dana's formula, which is. -- Kind regards, Niek Otten Microsoft MVP - Excel "Niek Otten" wrote in message ... | =NPER(6%,0,-750,1000) | | -- | Kind regards, | | Niek Otten | Microsoft MVP - Excel | | "Jaycee" wrote in message ... || I'm trying to figure out the compound interest formula to tell me how long || it will take for investment to reach a certain amount. || || E.g. || I have $750 that I can invest at 6%. How long will it take, compounded || monthly, to reach $1000. || || Thanks. || || | | |
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#10
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Excel formula question.
Thank you. I was on the right track before. I was missing the - for the PV
and it was giving me an error. "driller" wrote in message ... Jaycee, I prefer to use Dana's 1st formula (NPER), it falls under the financial category of excel....hope you are not confused between other formulas...more money... "Dana DeLouis" wrote: ...the compound interest formula... Perhaps as an Excel Formula: =NPER(6%/12,0,-750,1000) Or: =LOG(1000/750)/LOG(1+6%/12) -- HTH :) Dana DeLouis Windows XP & Office 2003 "Jaycee" wrote in message ... I'm trying to figure out the compound interest formula to tell me how long it will take for investment to reach a certain amount. E.g. I have $750 that I can invest at 6%. How long will it take, compounded monthly, to reach $1000. Thanks. |
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#11
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Excel formula question.
you are very welcome....go ahead to enjoy excel functions....keep up on the
right track...read help files and make it a habit to click the Fx button. the real brevity. "Jaycee" wrote: Thank you. I was on the right track before. I was missing the - for the PV and it was giving me an error. "driller" wrote in message ... Jaycee, I prefer to use Dana's 1st formula (NPER), it falls under the financial category of excel....hope you are not confused between other formulas...more money... "Dana DeLouis" wrote: ...the compound interest formula... Perhaps as an Excel Formula: =NPER(6%/12,0,-750,1000) Or: =LOG(1000/750)/LOG(1+6%/12) -- HTH :) Dana DeLouis Windows XP & Office 2003 "Jaycee" wrote in message ... I'm trying to figure out the compound interest formula to tell me how long it will take for investment to reach a certain amount. E.g. I have $750 that I can invest at 6%. How long will it take, compounded monthly, to reach $1000. Thanks. |
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