tlc53

Active Member
Joined
Jul 26, 2018
Messages
385
Hi there,

I can see myself spending (more) hours on this so before I do, I thought I'd check if there's any clever cookies who know how to do this.

I would like to calculate the compounding interest on a Overdrawn Loan account.

I would like the interest incurred to be shown quarterly.

In each quarter, it is possible to change the interest rate and it is possible for the quarterly dates to change (depending on the balance date).

I have created a section where all Additions to the Loan/Debits can be entered (Date & Amount). For each addition, I would like it to show me what the compounding interest amount is, split over the four quarters.

So far, I have worked a formula for each addition which tells me the amount of days in the quarter it is subject to interest and from this, the amount of interest incurred for each quarter, at that quarters interest rate. However, and this is where my problem lies, it is just calculating basic interest and not compounding.

Well and truly stuck on this!

Here is an example of the formula I have for calculating the 1st quarter interest of an addition;

=(C25*$E$17)/$D$21*V25

C25 Loan Addition Amount * E17 Quarterly Interest Rate / D21 Total 365 days in all quarters * V25 days addition active in 1st quarter

I then have similar formulas to work out Quarter 2, 3 and 4 interest.

Can someone please tell me how I go about making this compounding interest?

Thank you!
 

Excel Facts

Lock one reference in a formula
Need 1 part of a formula to always point to the same range? use $ signs: $V$2:$Z$99 will always point to V2:Z99, even after copying

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