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formula for compound interest quarterly in excel. FVC6 C8 C7 C80 - C5. The Excel compound interest formula in cell B4 of the above spreadsheet on the right once again calculates the future value of 100 invested for 5 years with an annual interest rate of 4.
Amount 1. FV PV 1rn where FV is future value PV is present value r is the interest rate per period and n is the number of compounding periods. Therefore I have included the excel demonstration file.
Compound interest is the addition of interest to the principal sum of a loan or deposit or we can say interest on interest.
Compound Interest P 1 in 1. In the example shown 1000 is invested with an annual interest rate of 5 the formulas in column D calculate the future value of the 1000 assuming the compounding periods shown in column C. Initial investment 1 annual interest ratecompounding periods per year years compounding periods per year. Compound interest is the addition of interest to the principal sum of a loan or deposit or we can say interest on interest.