If you understand the generic formula you can comfortably input your formulas on excel and calculate for compound interest. FV PV1rn where FV is future value PV is present value r is the interest rate per period and n is the number of compounding periods. The interest rate and number.
So Interest calculated over the inflated amount is called Compound interest.
Principal Amount 1Annual Interest Rate12 Total Years of Investment12 In above example with 10000 of principal amount and 10 interest for 5 years we will get 16453. For principal we will provide the reference of B1 cell and for schedule we will specify 00125 as. To reach the formula for compound interest you algebraically rearrange the formula for CAGR. N Number of compounding period which could be daily annually semi-annually monthly or quarterly.