Compound Interest Formula Excel Version 3 Methods

Compound Interest Formula Excel Version 3 Methods

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How to make a compound interest formula excel version?

Using compound interest formula in your interest computations seems simple with the online calculators now available for everyones use. But how about computing using Excel? How do we do it? There are three ways in computing with the compound interest formula excel version.

Computing using the compound interest formula excel version has three methods. The first method is to use an equation. The second one is to make a command in MS Excel. The third one is to simply search and find a compound interest formula excel version in the internet and download it. In this article we will discuss about the first method because this is the most commonly used today. The second method would need not explaining as most excel spreadsheets regarding the compound interest formula excel version can be downloaded through the internet as the third method.

Making use of the first method of using an equation of the compound interest formula excel version appears to be stress-free since you will be able to customize the amounts to be computed every time there is a need to renew it. But in the end it would be too much of a hard work when you have to retype and renew each and every amount that you have input in the past. The second method in compound interest formula excel version of making a command in MS Excel is a bit hard specially for persons who do not have any IT experience. The reward in this method is after you have made the bug-free command in excel, you can now change the amounts with ease. The third method however is the easiest one. It only needs you to search online for the correct type of compound interest formula excel version to download and use whenever you need it.

Column Branding and Naming

To make the 1st method, you would need the MS Excel program and the compound interest formula excel version. First and foremost you need to open the program and create a new spreadsheet or blank workbook. Now, you will need to brand or give name to the columns in your spreadsheet so that it will not be confusing when we put the compound interest formula excel version. First column is for the total amount that you will be getting from your investment. Second column is for the amount of cash that you have invested or principal amount plus the added cash that you put in your investment monthly. The third column is for the interest rate. Last column is for the time period, usually in years, that you will invest your cash. So all in all, we will use 4 columns. One column for the result and the succeeding three for the compound interest formula excel version.

After giving brand or naming your columns it is time to put the compound interest formula excel version to use. On the next 1st column, next row to your column name, there is where you should put the compound interest formula excel version. Therefore the formula would be: =B2*(1+C2)^D2 or in other words A2 or the field wherein you would put the compound interest formula excel version is equals to the cash amount that you have invested multiplied to the interest rate plus one then multiplied to the number of years that you will invest the cash. Remember that your interest rate should be in decimal form or you could use C2/100 if you do not know how to make a percentage form of number to decimal form. Afterwards, if you need new computations in other rows, you would have to input again the compound interest formula excel version in A3 and so on and so forth.

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