Posted by Paul B on January 22, 2002 6:16 PM
What would the formula be to find the compound interest on $10,000 for six months and one year @ 5.5%?
Thanks for your help
Posted by Jacob on January 22, 2002 6:31 PM
Compount Interest = Principle*(1 + Interest Rate)^(number of years)
For Siv Months
For 1 year
Posted by Joseph S. Was on January 22, 2002 6:32 PM
Rate is the interest rate.
Nper is the total number of payment periods.
Pv is the present value.
Start_period is the first period in the calculation. Payment periods are numbered beginning with 1.
End_period is the last period in the calculation.
Type is the timing of the payment(0= End of period payment and 1= Beginning of period payments.
Returns the cumulative interest paid on a loan between start_period and end_period.
If this function is not available, and returns the #NAME? error, install and load the Analysis ToolPak add-in.
Note The interest rate is divided by 12 to get a monthly rate. The years the money is paid out is multiplied by 12 to get the number of payments.
Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at an annual interest rate of 10 percent, use 10%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 10% for rate and 4 for nper.
Nper, start_period, end_period, and type are truncated to integers.
If rate ¡Ü 0, nper ¡Ü 0, or pv ¡Ü 0, CUMIPMT returns the #NUM! error value.
If start_period < 1, end_period < 1, or start_period > end_period, CUMIPMT returns the #NUM! error value.
If type is any number other than 0 or 1, CUMIPMT returns the #NUM! error value.
Posted by Paul B on January 22, 2002 6:46 PM