Compound interest is the interest on a loan or deposit calculated based on both the initial principal and and the accumulated interest from previous periods. A Monthly compound rate. Future Value Simple Interest Present Value 1 i n Where.
The Excel compound interest formula in cell B4 of the spreadsheet on the right once again calculates the future value of 100 invested for 5 years with an annual interest rate of 4.
- i is the periodic interest rate. Where V f final value including dividends and interest. Is there a way to adapt this formula to 1 In each period only a of the interest gained in that period remains in the sum. Future Value Simple Interest Present Value 1 i n Where.