Excel Tutorial – How to Construct a Compounding Interest Financial Calculator periods

Posted on: March 18th, 2010 By: admin Under: Calculators Articles

You can create an almost infinite variety of calculators right in your spreadsheet program MS Excel.

Here's how to build their 10 years compound interest financial calculator helps you see, for example, how will your $ 100 grows by x percent interest per year, about a year.

1) Run a worksheet in Excel.

2) Reserve in cell A1 to the principal amount in U.S. dollars. Think about how your"deposits" in the bank.

3) Reserve the cell B1 for your annual interest rate (entered as a decimal number like 5.6 or 34.8 millimeters).

4) In cell C1, enter the following formula in the text input bar just above the spreadsheet and click on the green to select the formula in cell C1 to save:

= A1 + ((A1/100) * B1)

This formula takes the amount you enter in cell A1, is divided into 100, then multiplied by the annual rate of B1, thenA1 add it to the original sum to give you the total amount made by the end of the first year. For example, (B1), C1 value of $ 100 deposit (A1) to 5% per year should be $ 105.

Now, here comes the exciting part.

5) Click and select cell C1 so that Excel should display a black rectangle around the cell. When you put the mouse towards the bottom right corner of the cell, the cursor turns into a dark and elegant, more ("+").

6) Click and dragCell C1 down as the cells you want along the column C. E 'automatically copies the formula in C1 to all the other cells – but not perfect. Now you have to adjust each formula a bit '.

If you click on it undesirable cell C2, you get the following formula:

= A2 + ((A2/100) * B2)

7) is amended by replacing all A2 "" s with "C1", because you want to C1 amount will be compounded, not the amount in A2 (which is empty) have.

So the correct formula for C2Words

= C1 + ((C1/100) * B1)

The correct formula for the C10 is as follows:

= C9 + ((C9/100) * B1)

Now your computer is ready to try.

Plug in 100 for the A1 and 5 for B1 and you have $ 162.8 dollars at the end of 10 years.

What happens if the rate is increased by one percentage point to 6%? Change B1 to 6 and receive $ 179 U.S. dollars at the end of 10 years.

You can easily stretch this calculator to 20 or 30 years, adding extra rows if necessaryColumn C and adjusting the formula for each cell accordingly, as described above.

Happy saving!

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