How to calculate Compound Interest
 

Hi,

Can any one let me know how to calculate compound interest in excel using
formula for function.

Thanks in Advance

How to calculate Compound Interest
 

See if any of the following functions are helpful:
INTRATE
IRR
MIRR
RATE
YIELD
--
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Jim

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"Nikhil" wrote:

Hi,

Can any one let me know how to calculate compound interest in excel using
formula for function.

Thanks in Advance

How to calculate Compound Interest
 

Invest P for n years at R% per year

beginning of year 1 you have P, so end of Year 1 you have: P+RP or P(1+R)
beginning of year 2 you have P(1+R); end of year 2 you have P(1+R)(1+R) or
P(1+R)^2
beginning of year 3 you have P(1+R)^2; end of year 3 you have P(1+R)^2*(1+R)
=
P(1+R)^3
.......
by the mathematical method called induction: by end of year n you have
P(1+R)^n

In Excel
A1 holds P
A2 holds R
A3 holds n
Value at then of year =A1*(1+A2)^A3
Interest accumulated =A1*(1+A2)^A3 -A1
best wishes
--
Bernard V Liengme
Microsoft Excel MVP
www.stfx.ca/people/bliengme
remove caps from email

"Nikhil" wrote in message
...
Hi,

Can any one let me know how to calculate compound interest in excel using
formula for function.

Thanks in Advance

How to calculate Compound Interest
 

Thanks you very much Bernard


"Bernard Liengme" wrote:

Invest P for n years at R% per year

beginning of year 1 you have P, so end of Year 1 you have: P+RP or P(1+R)
beginning of year 2 you have P(1+R); end of year 2 you have P(1+R)(1+R) or
P(1+R)^2
beginning of year 3 you have P(1+R)^2; end of year 3 you have P(1+R)^2*(1+R)
=
P(1+R)^3
.......
by the mathematical method called induction: by end of year n you have
P(1+R)^n

In Excel
A1 holds P
A2 holds R
A3 holds n
Value at then of year =A1*(1+A2)^A3
Interest accumulated =A1*(1+A2)^A3 -A1
best wishes
--
Bernard V Liengme
Microsoft Excel MVP
www.stfx.ca/people/bliengme
remove caps from email

"Nikhil" wrote in message
...
Hi,

Can any one let me know how to calculate compound interest in excel using
formula for function.

Thanks in Advance