compute interest at 1.05% compounded daily on $77,000 for 5 years

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Guest

i have invested $77,000 at an interest rate of 1.05% compounded daily. i want
to create a formula showing the yield at the end of 5 years (by day).
 
larionova said:
i have invested $77,000 at an interest rate of 1.05% compounded daily. i want
to create a formula showing the yield at the end of 5 years (by day).
Click to expand...

Do you mean you want to show every day's value for 1825 days? Or do you
want something that will show the value for any given day? Or do you
just want the value at the end of 5 years?

There is a simple formula that will give the value at any particular
time of compounded interest.

FV = P(1 + r)n

Future Value = principal times interest rate raised to the power of the
duration.

Your interest rate would be .05/365 + 1

So your formula is 77000*(1.000136986)n
the n is the number of days and is an exponent.

to find your balance at, say, day 123 just plug 123 into n.

John
 
Thank you John. I input the formula in cell A1, and all I got for an answer
is the formula. Please, what am I edoing wrong?
 
make sure the cell that you've put the formula in is formatted a
general
then recalculate your cell (press f2 to edit, then press enter
 
What formula did you put in the cell?

Try this.

In a2 put =power(1.000136986,a1)*77000

Put the mumber of days in a1 and the principal will appear in a2... did
for me anyway.

John
 
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