How to calculate compound interest and multiplier value?

[dvm49]

I would like to know the formula to calculate compound interest (i.e the value in C4:C8). Also I would like to know how much time my money has got appreciated in the cell E4:E8.. Need to calculate this value from my invested amount and value after 15 years. Any help would be appreciated.

 

[Peter Bartholomew]

The maturity amount you have quoted are returned by the formula
= FV( CAGR/12, 180, -10000, , 1)

 

[dvm49]

It doesn't work for me. Can you please put the formula in an excel and upload pls.

 

[cyliyu]

Try this from Peter's formula

=FV(A4/12,180,-10000,,1)

 

[dvm49]

Thanks that works. Can you also pls explain what is 180, -10000 and 1 in the formula?

 

[Peter Bartholomew]

You had CAGR as a column header so I used it as a defined name to reference the interest rate. If you do not define the name, any formula that references it will not work and will give a #NAME! error.
I have assumed the interest accrues monthly so the number of periods is 12x15 (months per year x years). I am not a finance person but I believe the minus sign indicates an outflow of money that is used to generate an asset. The final 1 specifies whether interest is accrued at the beginning or end of the month.

To go from the annual rate to a monthly rate could be either of two formulas, depending upon how one defines an annual rate. I tried the mathematically rigorous
= (1 + CAGR)^(1/12) - 1
and the convention
= CAGR / 12
and found the latter gave a match to your quoted values.