Scribd
Upload
17 views

Simple Vs Compound Interest

The document compares the future value of an initial principal amount using simple versus compound interest over a 40 year period at an annual rate of 8%. The future value using compound interest grows exponentially while simple interest grows linearly, resulting in a much larger ending balance with compound versus simple interest after 40 years.

Uploaded by

satking24
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
17 views

Simple Vs Compound Interest

The document compares the future value of an initial principal amount using simple versus compound interest over a 40 year period at an annual rate of 8%. The future value using compound interest grows exponentially while simple interest grows linearly, resulting in a much larger ending balance with compound versus simple interest after 40 years.

Uploaded by

satking24
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 6

100

8%

Period
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

FV (Simple Interest) FV (Compound Interest)


100.00
100.00
108.00
108.00
116.00
116.64
124.00
125.97
132.00
136.05
140.00
146.93
148.00
158.69
156.00
171.38
164.00
185.09
172.00
199.90
180.00
215.89
188.00
233.16
196.00
251.82
204.00
271.96
212.00
293.72
220.00
317.22
228.00
342.59
236.00
370.00
244.00
399.60
252.00
431.57
260.00
466.10
268.00
503.38
276.00
543.65
284.00
587.15
292.00
634.12
300.00
684.85
308.00
739.64
316.00
798.81
324.00
862.71
332.00
931.73
340.00
1,006.27
348.00
1,086.77
356.00
1,173.71
364.00
1,267.60
372.00
1,369.01
380.00
1,478.53
388.00
1,596.82
396.00
1,724.56
404.00
1,862.53

Pick a Year:

30

Compound vs Simple In
8% per year for 40 Ye

2,500.00
30.00

0.00
340.00
1006.27

30.00
30.00
2,000.00
Future Value

PV
Rate

1,500.00
1,000.00
500.00
0

10

15

20

Years
FV (Simple Interest)

This workbook is Copyright 2007 by Timothy R. M

Please visit http://www.tvmcalcs.com/ for free time v


calculator, and Microsoft Excel tutorials.

39
40

412.00
420.00

2,011.53
2,172.45

Compound vs Simple Interest


8% per year for 40 Years

1,006.27

340.00

10

15

Years
FV (Simple Interest)

20

25

30

35

FV (Compound Interest)

ght 2007 by Timothy R. Mayes, Ph.D.

mcalcs.com/ for free time value of money, financial


Excel tutorials.

40

30

You might also like