Let me repeat from above that interest rate implicit in the lease is simply internal rate of return on all payments and receipts from the lease. To start youll need the interest rate length of loan and the amount borrowed. At the rate the bank provides your interest is called the Nominal Interest Rate.
And the formula in excel for yearly compound interest will be.
Next figure out the number of compounding periods during a year and it is denoted by n. We have data of borrowed loan detail from any bank. How to Calculate Compound Interest Using the Future Value FV Formula Excel. For calculating yearly compound interest you just have to add interest of the one year into next years principal amount to calculate the interest of the next year.