My Math Forum Reverse compound interest excel formula?

 Elementary Math Fractions, Percentages, Word Problems, Equations, Inequations, Factorization, Expansion

 February 5th, 2015, 04:52 PM #1 Member   Joined: Oct 2014 From: Mars Posts: 37 Thanks: 0 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.
 February 5th, 2015, 05:17 PM #2 Math Team   Joined: Dec 2013 From: Colombia Posts: 7,671 Thanks: 2651 Math Focus: Mainly analysis and algebra Libre Office has a NOMINAL function. In your case $$A = \text{NOMINAL}(Y,I)$$
 February 5th, 2015, 07:27 PM #3 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1038 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.
 February 6th, 2015, 12:48 AM #4 Member   Joined: Oct 2014 From: Mars Posts: 37 Thanks: 0 Thanks Denis! Works great!

 Tags compound, excel, formula, interest, reverse

,

,

,

,

,

,

,

,

,

,

,

,

,

,

# reverse compounding formula

Click on a term to search for related topics.
 Thread Tools Display Modes Linear Mode

 Similar Threads Thread Thread Starter Forum Replies Last Post RickOShay Math Software 5 August 31st, 2013 10:01 AM redliner74 Economics 3 July 17th, 2013 11:04 PM Qwertyqwerty Elementary Math 2 September 20th, 2011 10:41 PM nastenka Economics 0 December 24th, 2009 01:12 PM RickOShay Algebra 0 December 31st, 1969 04:00 PM

 Contact - Home - Forums - Cryptocurrency Forum - Top