Im studying for my Excel class and need an explanation.
that calculates how much money an account would grow to in 25 years if you put $5000 into it and it grew at 9% interest each year. Show the interest you earn each year and the total at the end of a given year
Part 1: Use the formula I = PRT to calculate how much interest you earn in the first year
I = interest
P = Principal (starting with $5,000)
R = Rate of interest (9%)
T = Time (1 year, in this case)
At the end of the first year, you will have the original Principal ($5000), plus the Interest (your calculation)
Add them together.
At the beginning of the next year, their sum is what you have as your starting Principal
I = PRT
Interest Principal Rate Time End of Year
Year 1 $450 $5,000 9% 1 $5,450
Year 2 $491 $5,450 9% 1 $5,941
Year 3
Year 4. . .
Part 2: Create a new sheet. What happens if you earn 12% starting in Year 11? (What is the final amount in year 25?)
Part 3: Create a third sheet. What happens if you earn 9% each year, but in Year 6, you start adding $1000 at the
start of each year (Whats the final amount in Yr 25?)
Use different fonts, shade the boxes, and jazz it up so it looks professional!!
*** You will have three worksheets in your Workbook when you are complete. Save as: Watching Money Grow
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