Monday, December 27, 2021

Calculate Future Amount based on Changing Rates in Excel

If you were offered a guaranteed interest rate for a couple of years but the rates changed depending on the year, how would you know know what the future value would be? Say you're investing $1000 and for year one the interest rate is 5%, year two is 4.5% and year three is 4%. This is basically compounded interest on top of each year. It's fairly easy to do manually and even easier to do with the FVSCHEDULE function. Another fun way to use this function is to find out what historical figures would be worth today based on an inflation adjusted amount. The video will cover how this could be done.

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