What Is The Formula For Monthly Compound Interest In Excel Complete Guide

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what is the formula for monthly compound interest in excel. Add a percent sign after the figure to tell Excel to treat it as a percentage. In our example the formula is A2 1B2 where A2 is your initial deposit and B2 is the annual interest rate.

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Enter the interest payment formula. Assume you put 10000 into a bank. A P 1rnnt P.

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 get the total number of payment periods we multiply it by 12. A P 1rnnt P. Download Corporate Valuation Investment Banking Accounting CFA Calculator others. Principal Amount 1Annual Interest Rate12 Total Years of Investment12 In above example with 10000 of principal amount and 10 interest for 5 years we will get 16453.