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February 5th, 2015, 04:52 PM   #1
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Question Reverse compound interest excel formula?

Hi, is there a way to find out the annual compound interest (A), from the interest (I) over (Y) number of years?

For example:

If interest over 5 years is 300%, so I=5, Y=3.0, how can I calculate A=?

Thanks in advance.
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February 5th, 2015, 05:17 PM   #2
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Libre Office has a NOMINAL function. In your case $$A = \text{NOMINAL}(Y,I)$$
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February 5th, 2015, 07:27 PM   #3
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Well, if your weird(!) example means an initial deposit
of 1 dollar accumulates to 4 dollars (300%) over 5 years,
then it's this simple:
1(1 + i)^5 = 4
1 + i = 4^(1/5)
i = 4^(1/5) - 1 = .3195079... or ~31.95% cpd annually.
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February 6th, 2015, 12:48 AM   #4
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Thanks Denis! Works great!
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