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Casual Articles - EXCEL Tutorial - How to Construct a Compounding Interest Financial Calculator
Are you opening a dollar store? Have you started looking for a location yet? If not, then it is important to know that finding the right location is without a doubt the most important tasks that you will undertake prior to opening your store. Take the time to thoroughly examine the location options that are available be
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Here is how you can construct your own 10-year compounding interest financial calculator that would help you to see, for example, how much your $100 will grow at x percent of interest a year, on a year by year basis.
1) Launch a clean worksheet in Excel.
2) Reserve the cell A1 for your principal dollar amount. Think of this as your “deposit” in the bank.
3) Reserve the cell B1 for your annual interest rate (entered as a decimal number like 5.6 or 34.8, etc).
4) In cell C1, enter the following formula into the text input bar just above the spreadsheet and then click the green check-box icon to save the formula into cell C1:<
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1) Launch a clean worksheet in Excel.
2) Reserve the cell A1 for your principal dollar amount. Think of this as your “deposit” in the bank.
3) Reserve the cell B1 for your annual interest rate (entered as a decimal number like 5.6 or 34.8, etc).
4) In cell C1, enter the following formula into the text input bar just above the spreadsheet and then click the green check-box icon to save the formula into cell C1:
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1) Launch a clean worksheet in Excel.
2) Reserve the cell A1 for your principal dollar amount. Think of this as your “deposit” in the bank.
3) Reserve the cell B1 for your annual interest rate (entered as a decimal number like 5.6 or 34.8, etc).
4) In cell C1, enter the following formula into the text input bar just above the spreadsheet and then click the green check-box icon to save the formula into cell C1:
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3) Reserve the cell B1 for your annual interest rate (entered as a decimal number like 5.6 or 34.8, etc).
4) In cell C1, enter the following formula into the text input bar just above the spreadsheet and then click the green check-box icon to save the formula into cell C1:
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=A1 + ((A1/100) * B1)
This formula will take the amount you enter into cell A1, divide it into 100, and then multiply it by the annual interest rate B1, and then add it to the original A1 amount to give you the total COMPOUNDED amount at the end of year one. For example, for $100 of deposit (A1) at 5% a year (B1), the C1 value should be 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 bring your cursor to the lower right corner of the cell, your cursor should turn into a dark and slim plus sign (“+”).<
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