Thursday, November 15, 2012

How to Calculate Compound Interest in Excel


1. Create a new blank Excel document by clicking on the 'File' menu and selecting 'New.'
2. Enter a column heading corresponding to the following values in the first row of your document starting in column A.Column - Heading
A - Amount Invested
B - Annual Percentage Rate
C - # Times Compounded Annually
D - # of Years
F - Future Value
3. Enter the desired values for calculation in row 2 starting in column A. Example values are listed below for each column. This represents $1,000 compounded quarterly at a rate of 2.25% for 10 years.A - 1000
B - .0225
C - 4
D - 10
4. Enter the following function in row 2 of column F.=A2*((1 B2/C2)^(C2*D2))The result of this formula should be approximately 1251.53.
5. Apply this formula to more rows by clicking on it and dragging your mouse down the desired number of rows. When you have highlighted enough rows in one column hit the Control (Ctrl) and D keys at the same time to 'Fill Down' the formula.

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