Compound interest in Excel

  Stubacka 14:46 14 Feb 06
Locked

I'm sure this must be easy to do but I can't find how.

I need a formula to add compound interest to a sum and return a the new total e.g.

cell A3 contains 100

The result in (say) cell A6 needs to add compound interest at 6% for 5 years and give the total figure including the interest.

  seedie 15:13 14 Feb 06

FV(rate,nper,pmt,pv,type)

Personally I find financial functions a pain in the ass but the help section in Excel may of of some use: lookup "financial".

Good luck

CD

  avesnes 15:25 14 Feb 06

I think this may work:-
Put the starting amount in cell A1
Put the interest rate in cell A2 (in decimal form such as 5% is entered as 0.05)
Put the number of years in cell A3

Then type in cell A4:-

=EXP(LN(A1)+(A3)*LN(1+A2))

(Note the two brackets at the end)

  pc_sausage 15:27 14 Feb 06

This has exactly what you want with screenshots:

click here

  Stubacka 15:55 14 Feb 06

Thanks everyone.

All suggestions could have been adapted to meet my needs but the site pc_sausage gave me had the exact calculation that I needed even down to the percentages and period used in the example.

Thanks again

  Cesar 08:58 15 Feb 06

^

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