Excel formula question.

[Jaycee]

I'm trying to figure out the compound interest formula to tell me how long
it will take for investment to reach a certain amount.

E.g.
I have $750 that I can invest at 6%. How long will it take, compounded
monthly, to reach $1000.

Thanks.

 

[Lori]

The amount after a given number of years is given by

=750*1.06^(years)

With some high school algebra you can find when this reaches $1000:

=LOG(1000/750)/LOG(1.06)

 

[Dana DeLouis]

...the compound interest formula...

Perhaps as an Excel Formula:
=NPER(6%/12,0,-750,1000)

Or:
=LOG(1000/750)/LOG(1+6%/12)

 

[Niek Otten]

=NPER(6%,0,-750,1000)

--
Kind regards,

Niek Otten
Microsoft MVP - Excel

| I'm trying to figure out the compound interest formula to tell me how long
| it will take for investment to reach a certain amount.
|
| E.g.
| I have $750 that I can invest at 6%. How long will it take, compounded
| monthly, to reach $1000.
|
| Thanks.
|
|

 

[Lori]

Multiplying this result by 12 gives 59.2 months if the annualized rate
is used.
If on the other hand 6% per annum is converted to 0.5% per month the
formulas is:

=LOG(1000/750)/LOG(1.005)

which gives 57.7 months.

 

[Niek Otten]

This is not compounded monthly; look at Dana's formula, which is.

--
Kind regards,

Niek Otten
Microsoft MVP - Excel

| =NPER(6%,0,-750,1000)
|
| --
| Kind regards,
|
| Niek Otten
| Microsoft MVP - Excel
|
|| I'm trying to figure out the compound interest formula to tell me how long
|| it will take for investment to reach a certain amount.
||
|| E.g.
|| I have $750 that I can invest at 6%. How long will it take, compounded
|| monthly, to reach $1000.
||
|| Thanks.
||
||
|
|

 

[driller]

Jaycee,
I prefer to use Dana's 1st formula (NPER), it falls under the financial
category of excel....hope you are not confused between other formulas...more
money...

 

[Lori]

This formula still applies if the annualized rate of 0.49% per month is
used (=(1.06)^(1/12)-1).

 

[_]

indeed correct, yet in excel, where forum viewer's are amazed on acrobatics,
they may catch the acrobatic of short or boolean shortcuts, but the real
world sense in computing are categorized and every thing is subject to
auditing, via excel defined functios...hope we do not misguide the real end
users..especially those working in financing sector...

 

[Jaycee]

Thank you. I was on the right track before. I was missing the - for the PV
and it was giving me an error.

 

[driller]

you are very welcome....go ahead to enjoy excel functions....keep up on the
right track...read help files and make it a habit to click the Fx button. the
real brevity.