The interest rate and. F P 1 rate nper F - FV rate nper P F FV rate nper-P. So we can also directly calculate the value of the investment after 5 years.
Principal Amount1Annual Interest Rate365Total Years of Investment36 5 In above example with 10000 of principal amount and 10 interest for 5 years we will get 16486.
The Excel compound interest formula in cell B4 of the. As PMT and PV argument in FV function is outflows in real we need to mention them in the negative form with minus - sign. In our example the formula is A2 1B2 where A2 is your initial deposit and B2 is the annual interest rate. Gross figure x 1 interest rate per period.