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How do I calculate compound interest in Excel?

Here's the formula for compound interest:

=P*(1+r/n)^(n*t)

Where P = principal, r = rate, n = compounds per year, t = years

Can you show me an example?

Sure! For $1,000 at 5% for 10 years:

=1000*(1+0.05/12)^(12*10)

Result: $1,647.01

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=P*(1+r)^n

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