My Math Forum Reverse compound interest excel formula?

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

 February 5th, 2015, 05:52 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, 06:17 PM #2 Math Team   Joined: Dec 2013 From: Colombia Posts: 7,697 Thanks: 2681 Math Focus: Mainly analysis and algebra Libre Office has a NOMINAL function. In your case $$A = \text{NOMINAL}(Y,I)$$
 February 5th, 2015, 08:27 PM #3 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1039 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, 01:48 AM #4 Member   Joined: Oct 2014 From: Mars Posts: 37 Thanks: 0 Thanks Denis! Works great!

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# reverse compounding formula

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