Compound interest
Work out a savings balance with compound interest, with the formula P*(1+r/n)^(n*t) or FV, and compare monthly and yearly compounding.
In this lesson
- The same with FV:
=FV(r/n, n*t, 0, -P). - Interest earned = balance minus principal.
- At the same rate, monthly compounding beats yearly, but only a little.
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- Skill
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Where it sits in Business math
- Profit margin and markup11 min
- Percentage increase and decrease9 min
- Compound interestThis lesson11 min
- Loan payments with PMT10 min
- Break-even point10 min
- Currency conversion table10 min
The steps
11 steps: 4 explanations, 3 Do this, 3 questions, 1 Your turn.
Try a free lesson first
Delete repeated rows from a merged list, and choose which columns decide what counts as a duplicate.
Confident · 9 min · Free, with no sign-up
Do the free lesson on your computer.
Send yourself the link and open it on a laptop or desktop.
On your computer, go tolearnford.com/go/BV7C