compounded-monthly.png
The above formula based on Compound Interest computes the Amount Earned given the inputs of Principal, Annual Interest Rate, Compounding Periods per Year and Number of Years.HTML Code:
Could someone help me rearrange the formula to compute the Annual Interest Rate given the inputs of Amount Earned, Principal, Compounding Periods per Year and Number of Years.
Last edited by hiwire03; 12-03-2020 at 06:47 AM.
B4=(((b7/b3)^(1/(b6*b5)))-1)*b5
Last edited by hiwire03; 12-03-2020 at 06:42 AM.
The image shows (effectively):
A B 2 Beginning balance $10,000.00 3 Annual rate 5.00% 4 Periods/year 12 5 Years 10 6 7 End balance $16,470.09
First, B7 can be calcuated more simply using:
=FV(B3/B4,B5*B4,0,-B2)
More precisely, B7 is $16,470.0949769029.
And given that result (copy-and-paste-value), B4 can be calculated simply using:
=RATE(B5*B4,0,-B2,B7)*B4
Or mathematically:
=((B7/B2)^(1/(B5*B4)) - 1)*B4
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