FVrate nper pmt pv type where rate interest rate. You can follow this same logic to create the formula that calculates year 3 interest in cell E2 D2 x 108. 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.
The formula now becomes.
In this case C2 contains the value 10180 so the Excel worksheet will calculate 10180 x 108 and will display 10917. To calculate compound interest in Excel you can use the FV function. Result of the RATE function is the periodic rate which must be multiplied by the number of compounding periods per year m to get the annual percentage rate. The RATE function is configured as follows.