Savings Interest CalculatorThe spreadsheet below is a savings interest calculator. It works out nominal and effective interest rates. You have to know your initial investment which amounts to a known total (final or future) value in a specified period of time.
where: Example:Mr. Hegel invests the modest amount of $10,000 in a savings bank. Five years later his investment amounts to only $16,200. What is the effective interest rate offered by his bank? If interest is compounded monthly, what is the nominal interest rate offered? This is a job for our very useful savings interest calculator... We just have to fill in the blanks... Initial Investment = 10,000.00 Total Value = 16,200.00 Number of years = 5 Nr. of Compounding periods / yr = 12 and the results are Nominal Interest rate = 9.687% Effective Interest rate = 10.129%
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