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how to do quarterly compound interest. The trick to using a spreadsheet for compound interest is using compounding periods instead of simply thinking in years. What I want to do in this video is talk a little bit about compounding interest and then have a little bit of a discussion of a way to quickly kind of an approximate way to figure out how quickly something compounds.
For example 7 is entered as 7 - do not enter 07. Calculate Principal Amount solve for P P A 1 rn nt. Cq P 1r4n 1 Where C q is the quarterly compounded interest.
Choose the interval that your savings will compound at.
In the formula A represents the final amount in the account after t years compounded n times at interest rate r with starting amount p. The compound interest formula is P 1in - P where P is the principal i is the annual interest rate and n is the number of periods. Divide Annual Interest Rate. Calculate rate of interest in decimal solve for r r n AP 1nt - 1 Calculate rate of interest in percent R r 100.