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Compounded Interest quarterly

  1. #1
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    Compounded Interest quarterly

    Hello,

    I have few deposits earning compounded interest quarterly. I have used the formula "=ROUND(FV(E3%/4,G3,,-C3,0),0)" to find out the interest earned between deposit date and Maturity date. However i would like to find out the interest earned for each financial year. (Jan-Dec)

    I am herewith attaching the excel sheet. My date format is in "DD-MM-YYYY"

    Could any one be kind enough to solve this issue.

    Thank you,

    Zaska
    Attached Files Attached Files

  2. #2
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    Re: Compounded Interest quarterly

    Quote Originally Posted by zaska View Post
    I have few deposits earning compounded interest quarterly. I have used the formula "=ROUND(FV(E3%/4,G3,,-C3,0),0)" to find out the interest earned between deposit date and Maturity date. However i would like to find out the interest earned for each financial year. (Jan-Dec) I am herewith attaching the excel sheet.
    To avoid the differences noted in column I, enter the following formula into H3 and copy down through H14:

    =ROUND(ROUND(FV(E3%/4,INT(F3/3),0,-C3),0)*(1+MOD(F3,3)*E3%/12),0)

    The explanation can be found in my response (#4) to your posting in mrexcel.com/forum (click here) [1].

    As explained there, it is difficult to provide a general solution to calculate the interest earned each calendar year, in part because it is difficult to know how a bank might report unrealized interest at the end of each year if the first year of deposit is not an integral number of quarters (e.g. starting July 6 in row 6).

    I do not have time at the moment to provide a complete solution.


    -----
    [1] http://www.mrexcel.com/forum/excel-questions/780492-interest-calculation-help.html

  3. #3
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    Re: Compounded Interest quarterly

    Thank you very much for the kind help and very detailed explanation.

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