Question concerning APR - Will give free access to my product for a working answer

Hi and thanks for taking the time to solve my problem. I am creating a wealth management tool, and as promised, solving my problem will reward you a free copy of my tool. It's very useful and glad to hear feedback

Question is this:

If I invest 100$ in to an index fund for example, and it gives me an annual return of say 6%, which is the formula that will provide me with the monthly return. I know how to calculate compound interest annually, but I need monthly compounding because in my tool monthly payments do not need to be equal.

So basically if in January you invest 25$ and in February 50$ and 75$ and so on, whatever the amounts may be... How can I calculate exact estimation based on for example 6% APR per month

Month investment Compound investment 6% APR per month
1 25 25,00 ?
2 50 75,00 ?
3 75 150,00 ?
4 100 250,00 ?
5 125 375,00 ?
6 150 525,00 ?
7 175 700,00 ?
8 200 900,00 ?

And obviously my nice formatting of text did not work, hope someone makes sense of it.

I used the FV function, in the formula

Please Login or Register  to view this content.

copied down to D9 to complete the table in the attached file.

Compound interest table..xlsx

I then checked a test result, using $25 deposits, against that of an online compound interest calculator.

Let me know if you have any questions.

Hi thanks for your answer.

I googled this my self before posting my question, and strangely, I used a little different formula, but got the exact same answer. Which unfortunately is wrong I continued your example all the way to 120 months or 10 years, and the result is below:

120months 3000Ģ last installment $223 493,71 principal $224 611,18 with interest

Itīs easy to see, that something goes wrong if you have invested at 6% APR for ten years and you have only made a litlle over 1000€ interest. This thing keeps making my head spin. I look at your formula, it seems logical, but when you look at the result, it just simply doesn't make sense. (If you have over 200K the interest should me arond 12K per year at 6% APR)

What going on here?

-Niko

Wow, sorry for typos, it seems my investment is in all major currencies

My mistake sir. This works perfectly. Thank you very much

You're Welcome and thank you for the feedback. Please take a moment to mark the thread 'Solved' using the thread tools above your first post. Hope that you have a good day.