The trick to using a spreadsheet for compound interest is using compounding periods instead of simply thinking in years. Interest RateEstimated Interest RateYour estimated annual interest rate. Step 2 We have the principal value or present value as 15000 and the annual interest rate is 5.
R the annual interest rate decimal.
You can download this Interest Rate Formula Excel Template here Interest Rate Formula Excel Template. How to calculate compound interest A the future value of the investment P the principal investment amount r the interest rate decimal n the number of times that interest is compounded per period t the number of periods the money is invested for. Principal x Rate x Time Interest p x r x t. Compound Interest Calculator Step 1.