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May 17th, 2018, 03:54 PM
#1
Thread Starter
Fanatic Member
[RESOLVED] Compound Interest Over Period Less Than 1 Year
Compound Interest can be compounded over different periods
such as daily, weekly, monthly, quarterly, yearly.
The following code computes the interest for any of the above compounding periods but is yearly based.
What I'd like to do is have any compounding period
but instead of the result requiring at least 1 being entered for years, that a month or day value can be entered. For example
if one has an annual rate of interest of 3 percent, compounded daily, but is earned only for a 3 month period, the returned result would be for that value.
Code:
Public Function CompoundFV(Principal As Currency, IntRate As Single, CompPeriods As Integer, Years As Integer) As Currency
'Forumula: Beginning Value * (1 + (interest rate/number of compounding periods per year))^(years * number of compounding periods per year) = Future Value
CompoundFV = Principal * (1 + (IntRate / CompPeriods)) ^ (Years * CompPeriods)
End Function
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May 18th, 2018, 02:32 AM
#2
Re: Compound Interest Over Period Less Than 1 Year
The formula doesn't change. You would simply use a value for Years that is not whole, e.g. in your 3 month example you would use 0.25 for Years.
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May 18th, 2018, 07:35 AM
#3
Thread Starter
Fanatic Member
Re: Compound Interest Over Period Less Than 1 Year
jmcilhinney:
Thanks. Have never seen a power as other than a whole number. Learned something.
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May 18th, 2018, 08:05 AM
#4
Re: [RESOLVED] Compound Interest Over Period Less Than 1 Year
Sure you have, e.g. finding the square root of a number is raising it to the power of 1/2.
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May 18th, 2018, 12:51 PM
#5
Thread Starter
Fanatic Member
Re: [RESOLVED] Compound Interest Over Period Less Than 1 Year
Never thought of it in that context before.
But I get it.
Thanks again.
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