I need help in writing an excel formula

Question

I need help in writing an excel formula -in plane understandable English –to find the compound interest of a sum of money in the bank I want it be able to vary the following

Amount deposited

Interest in percentages

Time in months

I also want the interest payed to be calculated daily and added at the start of the next month

Thanks for your help

Geoff

I have looked on the net including MS excel but have had no joy

Answer 1

You should be able to use Excel's FV (future value) function for this. Fill out cells like this:

A1: Enter amount deposited

A2: Enter your interest percentage (annual)

A3: Time in months

A4: Enter this formula:

=-FV(A2/12,A3,0,A1)

Note that the rate is divided by 12 since your periods are months, and the zero is additional deposits, which there are none.