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Q: Excel ( Answered ,   0 Comments ) Question
 Subject: Excel Category: Computers > Software Asked by: regino-ga List Price: \$10.00 Posted: 08 Nov 2006 21:49 PST Expires: 08 Dec 2006 21:49 PST Question ID: 781253
 ```Hello I am trying to come up with some mutipliers that would represent the future value of a number i.e., let's say that I wanted to know how much \$5000.00 would be worth if it returned 5%, simple interest, after 5 years, 10 yrs, 15 yrs. The same for 6%, 7%, 8%, 9%, 10%, 11%, 12%, 13%, 14% and 15%. I don't know if I am making myself clear here or not but what I need is the multiplier so that I can let Excel do all the work.``` Request for Question Clarification by efn-ga on 08 Nov 2006 23:11 PST ```Are you sure you want simple interest and not compound interest? If so, would a formula using three variables, the initial amount, the interest rate, and the number of years, be a satisfactory answer?``` Clarification of Question by regino-ga on 09 Nov 2006 10:36 PST ```I'm wrong. I need compound interest not simple interest. Here is what I have now but I don't know where I got it or if its correct or not because its been so long ago. According to what I have, if I multiply 1.28 times a given number it will give me the value of that investment if it made 5% for five years. Example; \$1000. times 1.28 comes to \$1280.00 That's what \$1000. would be worth if it had made 5% over a five year period. 1.63 for ten years and 2.08 for 15 years. Are these multipliers accurate?``` Subject: Re: Excel Answered By: omnivorous-ga on 09 Nov 2006 10:59 PST Rated: ```Regino: The interest compounding works as you've outlined. For five years at 5%, the factor used to multiple an investment would be: 1.05 * 1.05 * 1.05 * 1.05 * 1.05 = (1.05)^5 -- that's 1.05 to the 5th power, a shorthand mathematical notation that Excel accepts as well. The factors at 5% for each period are: 5 years: 1.276281563 10 years: 1.628894627 15 years: 2.078928179 I've put together an entire table for you for the three time periods and interest rates from 5% to 15%: http://www.mooneyevents.com/interestrates.xls Best regards, Omnivorous-GA``` Clarification of Answer by omnivorous-ga on 09 Nov 2006 13:03 PST ```Regino -- Thanks so much for the kind words and extra sum! Best regards, Omnivorous-GA```
 regino-ga rated this answer: and gave an additional tip of: \$5.00 `Thank you very much. You did a great job.`  