I need serious help with a monthly compound interest formula.
I've been up and down the web with no luck. All I've found is a yearly compound interest formula with no option for monthly calculations. I can do it manually, but its laborious and time-intensive.
What I'm doing right now
Compound Interest Calc
Initial Investment (2781.51)=A
Compound Interest % APY 1.25
Compound Interest Decimal (0.0125)=B
Initial Return (2816.278875)=C
2nd Month (5632.992361)=D
3rd Month 8484.914765
4th Month 11372.4862
5th Month 14296.15228
6th 17256.36418
7th 20253.57873
8th 23288.25847
Initial Formula (A*B)+A=C
2nd Month Formula (C*B)+C+A=D
As you can see, it is possible to brute force it. What I want is the formula to allow me to input an initial set value (A), get monthly interest on it (B) and then reinvest that amount (C) and re-run the formula with another monthly investment (A).
The tricky part is the addon monthly investment (A) per every month. There exist formulas for calculating a yearly total of an initial investment,
FV=PV*(1+i)^n
FV=Future Investment, PV=Initial Principal (A), i= interest rate (B), and n= number of months.
Can anybody help, or point me in the right direction? I'd figure I'd start here.
I've been up and down the web with no luck. All I've found is a yearly compound interest formula with no option for monthly calculations. I can do it manually, but its laborious and time-intensive.
What I'm doing right now
Compound Interest Calc
Initial Investment (2781.51)=A
Compound Interest % APY 1.25
Compound Interest Decimal (0.0125)=B
Initial Return (2816.278875)=C
2nd Month (5632.992361)=D
3rd Month 8484.914765
4th Month 11372.4862
5th Month 14296.15228
6th 17256.36418
7th 20253.57873
8th 23288.25847
Initial Formula (A*B)+A=C
2nd Month Formula (C*B)+C+A=D
As you can see, it is possible to brute force it. What I want is the formula to allow me to input an initial set value (A), get monthly interest on it (B) and then reinvest that amount (C) and re-run the formula with another monthly investment (A).
The tricky part is the addon monthly investment (A) per every month. There exist formulas for calculating a yearly total of an initial investment,
FV=PV*(1+i)^n
FV=Future Investment, PV=Initial Principal (A), i= interest rate (B), and n= number of months.
Can anybody help, or point me in the right direction? I'd figure I'd start here.