How Does Your Money Grow!
This write-up is for students who have experience with excel and are learning how to calculate compounded interest with excel.
Dr. Hye I Cue has 10,000 dollars and he wants to know how much money will he make in x amount of years if the interest rate is 3% and the interest is compounded annually, semiannually, quarterly, or continously.
Then Dr Hye I Cue wants to know which compounded interest will produce him the most money.
Dr. Hye I Cue has a pheltora of ways to solve this problem. Some are algebracially and graphically, but the most efficient way to solve his problem is with excel.
From the spreadsheet Dr. Hye I Cue can determine when he will have the most money and what compounded rate (quaterly, annually, etc.) will produce him the most money.
In conclusion, excel can help with solving a lot of practical problems. The one we solved using excel was a compounded interest problem. Over time money earned at any rate will always produce more interest when the interest is compounded continuously.