# Formula to calculate cumulative interest

1. ## Formula to calculate cumulative interest

I want to calculate the amount of interest which would be earned over a
number of years. I will be starting with a base amount (say \$25,000) which
will earn 8% interest compounded annually. I tried using the ACCRINTM
formula, but it isn't giving me the correct amount (which I figured out
manually).

My manual calculation showed that \$25,000 earning 8% interest compounded
annually over 9 years would earn a total of \$24,975 of interest. What
formula can I use to get Excel to do the calculation for me?

2. ## Re: Formula to calculate cumulative interest

=FV(8%, 9, 0, -25000)

--
Regards,

Peo Sjoblom

Portland, Oregon

"mam" <mam@discussions.microsoft.com> wrote in message
news:C50D940E-247A-4C8B-9A87-98C3B43B6447@microsoft.com...
>I want to calculate the amount of interest which would be earned over a
> number of years. I will be starting with a base amount (say \$25,000)
> which
> will earn 8% interest compounded annually. I tried using the ACCRINTM
> formula, but it isn't giving me the correct amount (which I figured out
> manually).
>
> My manual calculation showed that \$25,000 earning 8% interest compounded
> annually over 9 years would earn a total of \$24,975 of interest. What
> formula can I use to get Excel to do the calculation for me?

3. ## RE: Formula to calculate cumulative interest

"mam" wrote:
> My manual calculation showed that \$25,000 earning 8%
> interest compounded annually over 9 years would earn a
> total of \$24,975 of interest. What formula can I use to
> get Excel to do the calculation for me?

=FV(8%, 9,, -25000) - 25000

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