# Calculate Compound Interest in Excel - Get as Excel

Document Sample

```					Nat Webb PLC bank pays          10.00% interest per year on a bank account.
You put £1,000.00 into the account. How much money will be in the
account in 6 years time if no money is added or withdrawn?

Original   £1,000.00       add interest      =       £1,100.00
Amount

r year on a bank account.
ney will be in the

NatWebb Bank PLC v

Teacher notes: insert different amounts in cell B2 and different
interest rates in cell D1.

Nat Webb PLC bank pays          10.00% interest per year on a bank account.
You put £1,000.00 into the account. How much money will be in the
account in 6 years time if no money is added or withdrawn?

Original   £1,000.00       add interest      =      #######
Amount

ar on a bank account.
y will be in the

NatWebb Bank PLC v

Nat Webb PLC bank pays          10.00% interest per year on a bank account.
You put £1,000.00 into the account. How much money will be in the
account in 6 years time if no money is added or withdrawn?

Original   £1,000.00                 add interest                      =             #######
multiply the original amount by the interest rate and add it to the original amount
Amount

ar on a bank account.
y will be in the

NatWebb Bank PLC v
he original amount

1)

2)

3)

4)
General Rule

T=Px(1+r) n
T=Total
P=Principle (original) amount
r=Interest Rate
n=number of years

Use the genral rule to work these out.
A bank charges 6.9% interest on a loan of £5000. How much interest would be paid after 3 years?

A baby octopus weighs 10kg at birth and increases it's body weight by 5% a day. Calculate it's weight

Mr Webbs car cost £450 (honestly it did!) . It lost 10% of it's value each year. That was 3 years ago
How much is it worth now?

Howlong after Mr webb bought his dodgy old banger will it become worth less than £300?
£6,108.06

a day. Calculate it's weight after a week.
13.4

r. That was 3 years ago
£364.50

4 years
General Rule : This works for any compount interest question!
n
T=Px(1+r)
T = Total (the "final amount")
P = Principle (the original amount)
r = Interest Rate
n = Number of years

Use the genral rule and calculator to work these out. Write what you type in the calculatorto help you revise!

1) A bank charges 6.9% interest on a loan of £5000. How much interest would be paid after 3 years?          £6,108.06

2) A baby octopus weighs 10kg at birth and increases it's body weight by 5% a day. Calculate it's weight after a week.

3) Mr Webbs car cost £450 (honestly it did!) . It lost 10% of it's value each year. That was 3 years ago
How much is it worth now?                                                                                £364.50

4) Howlong after Mr webb bought his dodgy old banger will it become worth less than £300?                   4 years