Friday, July 24, 2009

How to Calculate Compound Interest in Excel

Compound interest is the amount that a rupees invested now will be worth in a given number of periods at a given compounded interest rate per period. Although Microsoft Excel does not include a function for determining compound interest, you can use the following formula for this calculation:
=PV*(1+R)^N
where PV is present value, R is the interest rate, and N is the number of investment periods.

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