Compound Interest

[Sarah_Lecturer]

Dear all

I need to work out compound interest based as follows.

If on the 31/01/1979 I invested 5000 at an APR of 8%, what would the value
be today? Obviously we want this to be updated as the date changes. We have
tried everything but being a bit dim, we cant seem to get it correct!

Thanks for any help you can offer.

We are using Excel 2003

Sarah

 

[Niek Otten]

Hi Sarah

Look here:

http://office.microsoft.com/en-us/excel/HA011117451033.aspx

 

[Sarah_Lecturer]

Thanks Niek. I am still stuggling with replicating the correct formula to
show the amount of days (difference from today and 31/01/1979). i.e. 5000
after 1 year (365 days) at 8% would be 5400, but what would it be if the
number of days were 385?

Sorry if this sounds obvious!

Thanks for all your help - much appreciated.

 

[Niek Otten]

Hi Sarah,


=FV(8%/365,385,0,5000)