Home > OS >  Verifying Compounded Interest Formula
Verifying Compounded Interest Formula

Time:11-13

I have used a Compounded Interest Formula to calculate the total amount after a year.

100000 invested on Jan 1st 2021 yields 5% every 2 weeks. So the total would be 355567.27 on Jan 1st 2022.

Is my calculation correct?

This is what I did.

enter image description here

CodePudding user response:

Yes, calc. is correct per following screenshot/function:

Direct calc. method

=C4*(1 C5)^C6

I'd say it's a great return given this equates to an effective annual rate of interest = ~256%:

Effective annual rate

=(1 C5)^C6-1

Notes: 26 calculated as follows:

Number of 2 week periods (2021)

=(DATE(2022,1,1)-1-DATE(2021,1,1))/14

CodePudding user response:

Yes, if it is really compounding 5% every two weeks.

Outside the scope of the question, but I find the FV formula in Excel does not simplify things. It would be easier for me to do =100000*(1.05)^26.

  • Related