How to Sort by Color in Excel
Compound interest is a form of interest in which the interest earned is added to the key amount, and the interest is determined on the new overall amount. With time, this could cause significant development in the investment. The system for calculating element interest How to Sort by Color in Excel
In the first cell, we enter the key amount, as an example, in cell A1. Within the next cell, we enter the interest rate, as an example, 5%, in cell B1. The amount of situations interest is compounded each year is joined in cell C1, as an example, 12 situations per year. The final variable is time, that will be joined in cell D1, as an example, 5 years.
Step 2: Assess the interest rate per time The interest rate (in decimal) per time is determined by splitting the annual interest rate by how many situations the interest is compounded per year. In cell E1, we enter the system =B1/C1, which gives the interest rate (in decimal) per period.
Step 3: Assess how many times The amount of times is determined by multiplying how many decades by how many situations the interest is compounded per year. In cell F1, we enter the system =C1*D1, which gives how many periods. Step 4: Assess the final amount The final amount is determined using the element interest formula. In cell G1, we enter the system =A1*(1+E1)^F1, which gives us the final amount following 5 years.
Step 5: Format the cells To make the worksheet more understandable, we can structure the cells. We can structure the cells containing monetary prices to produce as currency with two decimal places. We can also structure the cells containing the interest rate and time to produce as a portion with two decimal places.
Step 6: Copy the system to different cells We can copy the system from cell G1 to different cells to estimate the final amount for various prices of the key, interest rate, quantity of situations the interest is compounded each year, and time. We can also use Excel's autofill function to fill out the prices for various periods.
To sum up, the element interest system can be quickly determined applying Excel by entering the factors in the worksheet, calculating the interest rate per time, how many times, and using the system to estimate the final amount. We can structure the cells to really make the worksheet more understandable and copy the system to different cells to estimate the final amount for various values. Excel's capability to quickly estimate element interest helps it be a useful software for financial planning and investment.