How Does Your Money Grow!

by

Priscilla Alexander

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.

View Spreadsheet

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.

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