Grow a principal by a rate compounded over a number of periods.
Copy this formula
=A2*(1+B2)^C2Multiply the principal (A2) by (1 + rate)^periods. The result is the future balance; subtract the principal to get the interest earned. For monthly compounding, use the monthly rate and number of months.
=1000*(1+0.05)^10→$1,628.89$1,000 at 5% for 10 years.
=5000*(1+0.06/12)^(12*5)→$6,744.25$5,000 at 6% a year, compounded monthly for 5 years.
=FV(0.05, 10, 0, -1000)→$1,628.89The FV function returns the same result as the manual formula for $1,000 at 5% over 10 years.
Interest only
=A2*(1+B2)^C2 - A2Subtracts the principal to show earnings.
Use the monthly rate and month count: =A2*(1+annual/12)^(years*12).
Use FV with a payment: =FV(rate/12, years*12, -deposit, -principal). Enter the amounts you pay in as negatives.
Use =NPER(rate, 0, -1, 2). At 5% a year it returns about 14.2 years.
Simple interest is earned on the principal only: =A2*(1+B2*C2). Compound interest is also earned on earlier interest, so it grows faster.
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