Compound Interest Formula Excel: Automated Formula For Investments
Times nowadays people tend to have their own businesses
. Due to the growing online and automated industries, everything just seems easier and why not be your own boss? A new thing that has been getting popular is an investment. And some people are looking for ways to invest. The main purpose of having an investment is, of course, the profits.Since it is all about the profits, how does one know the outcome of an investment. The first thing an investor does is get a glimpse if he will have good profits with an investment. This is where the compound interest formula comes in. Now, since everything is getting automated, you can make a compound interest formula excel through the computer using the MS Excel. The compound interest formula excel is almost just the same as the manual thing. The only exception for the compound interest formula excel is that it is more versatile and can be upgraded or downgraded to your liking.
Remember that in an investment, you must always have a good intention and a strong mindset to earn. This will enable you to have the discipline and perseverance needed when investing on something may that be a simple savings account. The compound interest formula excel is created not only for computation purposes but also as a reminder. Some compound interest formula excel even has a timetable feature that you can use as your reminder and assessment records for the whole investment period.
How To Make A Simple Compound Interest Formula Excel?
The first thing you need to do is open the Microsoft Excel program to create your own simple compound interest formula excel. Now, Through the Insert Menu, select the Function option. A window will open. Through this you can now search for the function FV or just type it in to let the computer search for it. There will be another window wherein it will ask inputs from you to have the most approximate answer form the compound interest formula excel.
Here are the following inputs needed to create a compound interest formula excel:
The first one is Rate. This is where you need to enter the yearly rate of interest in percent form.
The second one is the Nper. This is where you need to enter the times that you will be depositing to your investment.
The third one is the Pmt. This is where you need to enter the cash money that you will be depositing each time for the n times that is stated above.
The fourth one is the PV. Usually, this does not need any inputs but if you want you can input some data and see what happens.
The last one is the Type. This is where you need to enter the time wherein you will be depositing more money to your investment. This is another input that is usually left blank in the compound interest formula excel.
Now, all that is left to do is to click Ok and see the outcome of your inputs in the compound interest formula excel.
by: William Ava