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.

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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?

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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?

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

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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

Thank you very much.  You did a great job.