Excel Formula

[Packer Fan]

Please help! I have a principal amount of 73,400 and need to create a
formula to show 5% interest that compounds daily for 118 months. Any help
that you can offer would be greatly appreciated.

Thank you so much!

 

[Brad]

Couple of questions that you need to have an answer for:

is the 5% an annual rate or an effective rate.
Do you assume 30 days in a months or a the actual number of days

Two "correct" that give different results
=FV(0.05/360,118*30,,-73400) -
most not all use the above for the interest rate - you may have to switch
the 360 with 365 and change the days calc 118*30 to what I have below...

=FV(1.05^(1/365)-1,F4-E4,,-73400)
where f4 has the ending date and e4 has beginning date