compound interest formula

[Guest]

hello,

Ok, I have a material cost in cell A1 - todays date in A2, the date the
material will be delivered in A3, and an inflation value in A4 (%per annum).

I need a formula that will work out what the material will cost when the
material is delivered.

eg. costs £100 today at a rate of 5%per annum it will cost £105 next year
and £110.25 in two years.

All input values are in seperate cells and can vary. Also it will have to
cope with fractions of a year.

Any ideas?

Ciara

 

[Morrigan]

Try this:

Set A2 and A3 to "Date" format.
A5 = A1*(1+A4)^((VALUE(A3)-VALUE(A2))/365)


Hope it helps.

 

[Guest]

say I want to do it between jan '04 and jan'05 - this counts as 1 year for me
but has 366 day - how can i account for a leap year?

 

[Mangesh Yadav]

Try the YearFrac worksheet function. You need to enable the analysis toolpak

Mangesh