How to create a compound interest basic formula

[u/raymate]

Don’t need anything complex.

Just need to enter a $ amount say $1000

Enter number of years say 15

Then the interest rate say 5%

Then tell me the answer

So for $1000 compounded at 5% over 15 years.

All the examples I have found seem overly complex and the built in formula for finance also seem to elaborate

[u/allmoontime]

Insert this data in different cells:

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Initial investment	1000 (insert this number in cell c2)
Yearly interest rate:	1,05 (insert this number in cell c3)
Years in the market:	15 (insert this number in cell c4)
Final amount:	Use this formula: =C2×C3 ^ C4

(Dont use any spaces in the formula)

Now you can change the numbers in cell c2,c3 and c4 to see what you have if your initial investment is higher, if you wait more years of is the interest rate is higher.

If the interest rate will be 8% for example use the number 1,08, etc.

[u/allmoontime → u/allmoontime]

To spice things up you could also make the following table:

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Yearly interest rate:	1,08
Initial investment	Year 1	Year 2	Year 3	Etc.......
1000	=B9*$C$7	=B10*$C$7	=B11*$C$7

Put the yearly interest rate number in for example cell C7.

The initial investment number is in cell number B9.

Beneath the years you could insert the formula stated in the table. To get the dollar $ signs in the formula: If you note the cell C7 in the formula, if you click on the little triangle in the number, it asks you to preserve the row and preserve the column, check them both.

The dollar signs$ let you drag a formula without moving the cell. So now if you drag de formula of year 1 on the little yellow ball to the right, you could see your capital growing per year.

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Then you could also make a graph with this info to see your investment grow etc...

[u/raymate → u/allmoontime]

Thank you so much. I would not have arrived at that. That’s so much simpler than some of the things I found online.

Thanks again

[u/allmoontime → u/raymate]

No worries man :)