First of all fill the excel with the values to be used in the formula. Annual compound interest - Formula 1 An easy and straightforward way to calculate the amount earned with an annual compound interest is using the formula to increase a number by percentage. If you are investing 1000 with a 15 interest rate compounded annually below is how you would calculate the value of your investment after one year.
Example 3 Compound Interest Using FVSCHEDULE Excel Formula Step 1.
Calculation using Excels FV Formula. In our example the formula is A2 1B2 where A2 is your initial deposit and B2 is the annual interest rate. Initial investment 1 annual interest ratecompounding periods per year years compounding periods per year. If you need to calculate the future value of an interest when compounding frequency is quarterly you can simply change the value in cell B6 to 4.