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. The compound interest formula is A P1rn to the power of nt Compounding Interest Pros and Cons. Finds the Future Value where.
The function takes two arguments ie principal and schedule.
Investments like this grow quickly. N Number of Periods. Compound Interest P 1 r t P where. Interest rate over the same period of time.