Which formula to use for compounding interest for specific # of da

Discussion in 'Microsoft Excel Worksheet Functions' started by Guest, May 30, 2006.

  1. Guest

    Guest Guest

    Principal amount is $57,310.38; interest is 3% per annum, length of time is
    195 days with 1 payment at the end of the 195 days. I'm clueless as to which
    formula to use and what #'s to plug in. Hope someone can help.
     
    Guest, May 30, 2006
    #1
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  2. Guest

    Guest Guest

    Is this compounded daily, or is it compounded once at the end of the 195 days
    (in which case wouldn't technically be compounded)? By "1 payment" I assume
    you mean the entire pricipal is to be paid back after 195 days. I'll assume
    compounded daily and entire principal paid @ t=195 days:

    Amount paid Back = 57,310.37 * (1+ .03/365)^195 = $58,236.27
    Resulting in $925.90 in interest paid (58,236.27-57,310.37)

    Does that help?
    --
    Regards,
    Dave


    "ROL" wrote:

    > Principal amount is $57,310.38; interest is 3% per annum, length of time is
    > 195 days with 1 payment at the end of the 195 days. I'm clueless as to which
    > formula to use and what #'s to plug in. Hope someone can help.
     
    Guest, May 30, 2006
    #2
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