Compound Interest Formula! : (

Tommy_Dolitte · 09-08-2004, 03:21 PM

Anyone have this so I can input into my spreadsheet?

TD

Marshac · 09-08-2004, 04:03 PM

use the future value (FV) function.

The formula itself is P(1 + rate)^years

09-08-2004, 04:12 PM

Quote:

use the future value (FV) function.

The formula itself is P(1 + rate)^years

OK, I used to be OK with math as I am a Software Engineer, but I'm Getting to be an old fart now.

What is "^"

Marshac · 09-08-2004, 04:15 PM

it's a carrot... yum!

It's just a way of denoting an exponent without the use of supercase.

Tommy_Dolitte · 09-08-2004, 04:57 PM

Thanks. I used a link I have to a site that provides the results for a weekly contribution @ "x" %---did so for varying inputs, $100, $500, $750, $1000...then I added the exponential trend curve. I'm getting results:

Value = K*e^(0.4967)x

Where K is:

3,297 for $100 weekly contribution
16,487 for $500
24,731 for $750
32,974 for $1,000

Any math whizzes out there?

TD
8)

bongo2 · 09-13-2004, 02:18 PM

I don't understand what you are trying to do. If you are using a constant time frame then the value changes proportionally to the amount that you put in each month. Note that your answer for $1k is exactly twice your answer for $500.

In Excel the function FV() does all this for you, and will work for any interest rate and number of periods. If you know the future value and want to find the payment amound then PMT() is the one you want.

If you are looking for the formula, it's called the annuity formula and you can find it on google.

09-08-2004, 03:21 PM	#1
Tommy_Dolitte Recycles dryer sheets Join Date: Jul 2004 Posts: 170	Compound Interest Formula! : ( Anyone have this so I can input into my spreadsheet? TD

09-08-2004, 04:03 PM	#2
Marshac Full time employment: Posting here. Join Date: Aug 2004 Posts: 904	Re: Compound Interest Formula! : (* use the future value (FV) function. The formula itself is P(1 + rate)^years

09-08-2004, 04:15 PM	#4
Marshac Full time employment: Posting here. Join Date: Aug 2004 Posts: 904	Re: Compound Interest Formula! : (* it's a carrot... yum! It's just a way of denoting an exponent without the use of supercase.

09-08-2004, 04:57 PM	#5
Tommy_Dolitte Recycles dryer sheets Join Date: Jul 2004 Posts: 170	*Re: Compound Interest Formula! : (* Thanks. I used a link I have to a site that provides the results for a weekly contribution @ "x" %---did so for varying inputs, $100, $500, $750, $1000...then I added the exponential trend curve. I'm getting results: Value = K*e^(0.4967)x Where K is: 3,297 for $100 weekly contribution 16,487 for $500 24,731 for $750 32,974 for $1,000 Any math whizzes out there? TD 8)

09-13-2004, 02:18 PM	#6
bongo2 Recycles dryer sheets Join Date: Aug 2003 Posts: 443	*Re: Compound Interest Formula! : (* I don't understand what you are trying to do. If you are using a constant time frame then the value changes proportionally to the amount that you put in each month. Note that your answer for $1k is exactly twice your answer for $500. In Excel the function FV() does all this for you, and will work for any interest rate and number of periods. If you know the future value and want to find the payment amound then PMT() is the one you want. If you are looking for the formula, it's called the annuity formula and you can find it on google.

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