Advanced Excel Formula Help

[hl0m4n]

im trying to figure out this forumla for interest rates.

i want to do:
x dollars saved in a year (12 months) multiplied by interest rate (adjustable) multiplied by how many years i want to give me a total.

the basic formula would be amount saved multiplied by interest and then adding interest to the amount saved.

but how can i compute the yearly interest so it keeps building? hard to explain so it is year 1 saved * interest = ___+saved= total. then year 2 would be year 1+interest, etc.

anyone?

[leejoobin]

a wha.......................t?

[PaulBailey@ltbmw]

I understand what you're asking for. . .
But don't know how to input it into excel.
Might want to try a savings calculator

[PaulBailey@ltbmw]

http://www.math.com/students/calcula...e/compound.htm

http://www.bankrate.com/brm/calc/savecalc.asp

[Joonsup]

sum(A1:Z1)= total

[kyoko]

From what you are saying I would do the following:

Cell B1 is your interest rate for that year
Cell B2 is your initial balance
Cell A6 =B2
Cell B5 is your interest that year =B2*B1*12 (From your formula Balance * Interest Rate * Months)
Cell B6 is your total balance that year =A6+B5

Highlight Cell B5:B6. There is a little square on the bottom right. Click that and drag it to the right for how many years you want to calculate out...

In Row B you can put the interest rate you want for that year. You probably want to label everything so it's clear to you... and you might want to check your formulas to make sure that it's correct...

[darkphantom]

if you haven't found your answer yet, tell me, i'll make the sheet for ya -_-

[hl0m4n]

Originally Posted by xPaulBaiLeyx

http://www.math.com/students/calcula...e/compound.htm

http://www.bankrate.com/brm/calc/savecalc.asp

the bankrate is a great one. i want to get that on excel where i can freely change the interest rate, years, deposit, and monthly contribution to give me total.

possible?

[MJC///M3]

=PV(rate,nper,pmt, {fv},{type}) for present value of a future cash flow...
rate = interest rate,
nper = payement made each period
FV = future value,
Type 0 or 1 for when payments are due. 0 being end of period t or 1 at the beginning of period t.

or it seems as though you want a future value of a cash flow.

use =FV( "same as above" ) except substitute in your present value for FV.
Hope this isn't too jumbled, just open up excel and play with it.

Just remember to have reference cells that you can change (interest rate, t, payment amount and schedule...etc..) then build your forumlas off those cells....so that as you vary your interest rate, or cash flow....the formulas will automatically update with your new data.

[MJC///M3]

Originally Posted by hl0m4n

im trying to figure out this forumla for interest rates.

i want to do:
x dollars saved in a year (12 months) multiplied by interest rate (adjustable) multiplied by how many years i want to give me a total.

the basic formula would be amount saved multiplied by interest and then adding interest to the amount saved.

but how can i compute the yearly interest so it keeps building? hard to explain so it is year 1 saved * interest = ___+saved= total. then year 2 would be year 1+interest, etc.

anyone?

For your second part, you need to use FV = PV(1+rs/m)^mN
that will take into account your interest compounding.....where m is the number of compounding periods for year.

Or, you can solve for PV by re-arranging the equation. to PV=FV(1+(rs/m))^-mN
Hope this helps.