compound interest

  • Thread starter Thread starter martinbarnes
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M

martinbarnes

i'm trying to set up a formula that calculates interest over a period, based
on a compounding interest rate... any ideas
 
i'm trying to set up a formula that calculates
interest over a period, based on a compounding
interest rate... any ideas
Click to expand...

Click on Help > Excel Help and enter "compound interest", and you
should get lots of ideas.

If you are still stumped, post a follow-up with a specific example.

Suppose you deposit $1000 into an account that earns 3% interest
compounded daily. After a typical year, the account balance will be:

=round(fv(3%/365, 365, 0, -1000), 2)

If you want just the interest:

=round(fv(3%/365, 365, 0, -1000), 2) - 1000

HTH.
 
Hi,

FV is designed to calculate the principle and interest accumulated, if you
want just the interest then

=SUMPRODUCT(IPMT(5%,ROW(A1:A50),50,100))

In this formula 100 is your starting value, 50 is the number of periods and
ROW(A1:A50) indicates that you want the interest for all 50 periods. The
result is negative by just put a minus sign in front.

If this helps, click the Yes button.
 
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