Here B1 B2 B3 and B4 are the cells in excel. Rate rate per payment period. This will go in the A column.
R nominal annual interest rate decimal n number of compounding periods per year.
You can see the compounded interest by subtracting a periods worth of payment from the principal and then recalculating cell B4. Step 1 Open Microsoft Excel. 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. To simplify the process we have created a simple and easy Compound Interest Calculator Excel Template with predefined formulas.