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  1. #1
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    Question Amount at Compound Interest

    I discovered an old DOS spreadsheet while I was cleaning up in my computer room. While looking at the user manual, I saw a function which will calculate the amount an investment (principal) would return after so many periods at an interest rate.

    I can't seem to find this function in my version of Excel (part of Office XP).

    I'm not worried about present value or how long it takes to reach a goal - just how much (say) $1500 left for 5 years compounded monthly at 6% would yield.

  2. #2
    WS Lounge VIP sdckapr's Avatar
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    You can use the future value:
    =FV(6%/12, 5*12,0,-1500)

    Though I would just use the formula which is more intuitive to me:
    =1500*(1+6%/12)^(5*12)

    Steve
    Last edited by sdckapr; 2012-04-18 at 18:16.

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    Super Moderator RetiredGeek's Avatar
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    I'm with Steve!

    Here's an example of it in use.
    CompountInt.PNG

    CompountInt2.PNG
    Last edited by RetiredGeek; 2012-04-18 at 18:40.
    May the Forces of good computing be with you!

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  4. #4
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    Quote Originally Posted by sdckapr View Post
    You can use the future value:
    =FV(6%/12, 5*12,0,-1500)

    Though I would just use the formula which is more intuitive to me:
    =1500*(1+6%/12)^(5*12)

    Steve

    This the method I used and, of course, it works correctly. I am just surprised that it is not included as a built-in function.

    BTW, the DOS program is called ProCalc 3D from Parsons Technology. Their model was a cube: 512 pages with 512 columns and 512 rows on each page. You could view and work with the cube using any of the six faces. I never used it much, however.

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