To reach the formula for compound interest you algebraically rearrange the formula for CAGR. Amount 1. Step 2 We have the principal value or present value as 15000 and the annual interest rate is 5.
The interest rate and number.
Assign labels in column A rows 1-5 for the Principal. FV PV1rn where FV is future value PV is present value r is the interest rate per period and n is the number of compounding periods. But when someone lends money from the banks the banks charge the interest from the person who has taken the loan in daily compounding interest. Enter the details.