From the course: Google Sheets: Advanced Formulas and Functions

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Calculate the effect of interest

Calculate the effect of interest - Google Sheets Tutorial

From the course: Google Sheets: Advanced Formulas and Functions

Start my 1-month free trial

Calculate the effect of interest

“

- [Instructor] When you make an investment your money grows at the rate stated in your contract. In this movie I'll show you how to calculate the total of your investment for individual years. Rather than just one final value. This worksheet contains two different pieces of information. The first is the annual interest rate, that's the amount that you're investment will appreciate each year, and then we have the investment. The investment is $200,000, you can see that in cell B3. The idea is that your investment will grow by 4.3% over the next year. So we want to multiply the amount of the investment by one plus 4.3% for 104.3% to get the total value of the investment next year. So it'll be worth 104.3% more than it is now. To create that formula I'll click in cell B4, type in equal sign. And we're going to be multiplying the investment in B3. So I'll type B3 ... times, then in left parenthesis one plus the amount in B2. So 1 plus B2. I don't want the reference to cell B2 changing. So…

Contents