Calculation using Excels FV Formula Computing the compound interest of an initial investment is easy for a fixed number of years. For the fourth year the compound interest is 5625 562505 5625 28125 84375. This doesnt give you the compounded interest which generally gets lower as the amount you pay decreases.
You need the beginning value interest rate and number of periods in years.
All we did was multiplying 100 by 108 5 times. To access FV function we can go to Insert Function which is beside the formula bar or type sign where we need to see the result. This doesnt give you the compounded interest which generally gets lower as the amount you pay decreases. Microsoft Excel has inbuilt function names as FV or Future Value by which we can calculate the future value in terms of Compound Interest Applicable loan with interest monthly EMI with one formula.