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Suppose

Capital invested = Y

Annual Interest Rate = R%

Period of investment = T

Then if the interest is calculated (and compounded) n times a year

total value =

Y*[1 + r/(100*n)]^(n*T)

So interest accrued = Total value - Y

Suppose

Capital invested = Y

Annual Interest Rate = R%

Period of investment = T

Then if the interest is calculated (and compounded) n times a year

total value =

Y*[1 + r/(100*n)]^(n*T)

So interest accrued = Total value - Y

Suppose

Capital invested = Y

Annual Interest Rate = R%

Period of investment = T

Then if the interest is calculated (and compounded) n times a year

total value =

Y*[1 + r/(100*n)]^(n*T)

So interest accrued = Total value - Y

Suppose

Capital invested = Y

Annual Interest Rate = R%

Period of investment = T

Then if the interest is calculated (and compounded) n times a year

total value =

Y*[1 + r/(100*n)]^(n*T)

So interest accrued = Total value - Y

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Q: How do you work out interest accrued on spreadsheet for compound interest?

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Compound interest. This is where you work out the interest on a number, then work out the interest on top of the number with the interest added.

The spreadsheet does not change. The combination is called a compound document because of definition.

Because formulae save typing, and brain power - especially if it's a complicated spreadsheet. Take something simple - like a spreadsheet to work out the interest and repayments on a loan... It's much quicker to let the spreadsheet work out the amount of interest to be added each month - than to work it out manually. Additionally, the formula can be copied to more than one cell.

For the second (and subsequent) periods, if the interest is to be calculated for the original sum PLUS the interest earned so far then it is compound interest. If only the original amount earns interest in all periods then it is simple interest.

A spreadsheet works by showing the line relationships and the jobs and who is in charge

a spreadsheet

a acountant uses the spreadsheet to help to maths an work things out quicker

They can

AnswerCompound interest works like this.Take a principle (The amount of money you deposit) of $10,000.Lets say that the interest rate is 8% and that it compounds anually.At the end of one year you would have $10,800.With simple interest, at the end of two years, you would have $11,600 because you only earn interst on the principle.After three years you would have $12,400.However, with compound interest, you will earn interest on not just the principle, but the compounded interest as well.Therefore, with compound interest, at the end of two years, you would have 11,664.After three years it would be $12,597.12 and so on.

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