Accumulated compound interest rates factor calculation

eduzs

Well-known Member
Joined
Jul 6, 2014
Messages
704
Office Version
  1. 2019
  2. 2010
Platform
  1. Windows
Is there a formula to calculate a accumulated compound interest rates factor from/till any given month/year?
For example, I have a table with month interest rates:
A B
1 Oct/2017 1%
2 Nov/2017 3%
3 Dec/2017 4%
4 Jan/2018 2%
5 Feb/2018 5%
6 Mar/2018 2%
So If I wan't to get the accumulated compound interest rate factor form dec/2017 till feb/2018 the formula should do this calculation:
(1+(B3/100)+(1+(B4/100)+(1+(B5/100)=1,04*1,02*1,05=1,11384
The start/end month will be in a cell, like C1, D1
Maybe a matrix formula can do this?
Thanks
 
Last edited:

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Firstly is the interest rates you are quoting really 2% to 5% per month, if so can I invest in it?
Assuming that the % is really an annual percentage
the only way I can think of doing this is to create a "helper" column which you put this equation in it:
=1+C3/1200
and copy that down.
then to calculate the product of the whole range you can use this
=GEOMEAN(E3:E6)*COUNT(E3:E6)
 
Upvote 0
Why are you dividing B3 by 100?! If the cell displays 4%, then presumably the cell value is 0.04, not 4.

Based on that assumuption, array-enter the following formula (press ctrl+shift+Enter instead of just Enter):

=PRODUCT(1+B3:B5)

That will result in 1.11384 as you wish. But if you really want 11.384%, array-enter the following formula:

=PRODUCT(1+B3:B5)-1


PS.... If the cell value in B3 is truly 4, you can write =PRODUCT(1+B3:B5/100)-1.
 
Last edited:
Upvote 0
Firstly is the interest rates you are quoting really 2% to 5% per month, if so can I invest in it?
Assuming that the % is really an annual percentage
the only way I can think of doing this is to create a "helper" column which you put this equation in it:
=1+C3/1200
and copy that down.
then to calculate the product of the whole range you can use this
=GEOMEAN(E3:E6)*COUNT(E3:E6)

All those rates, numbers, months/years, etc don't are real, they are fictitious, just to illustrate the question.
Thanks offthelip and joeu2004, I will test these formulas.
 
Last edited:
Upvote 0

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