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How To Use Calculate Compound Interest With Excel

So maybe you have an investment, and you want to know what it will be worth in a few years? I will show you a method how you can easily find out.

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” – A. Einstein

compound interest in excel

The formula (by year)

Result = initial investment * ( 1 + interest rate) ^ number of periods

The formula (by Month)

Result = initial investment * ( 1 + interest rate/ periods per year) ^ (number of periods)

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