Comments on: An Introduction To Compound Interest With Spreadsheets, Part 2: Monthly Compound Interest, APRs, and APYs http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/ Financial talk for the rest of us Sat, 16 Feb 2013 01:14:45 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: Ted http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/#comment-590786 Ted Tue, 24 Mar 2009 21:42:51 +0000 http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/#comment-590786 Do you have a function that will calculate interest compounded annually but also taxed annually? For instance, you deposit $1000 into an account at 4% interest compounded annually. At the end of each year the interest earned is taxed at a flat 30%. What will the balance be at 40 years?

You could manually calculate the new balance each year and get to the answer of course:

A = ((25000(1+(0.04)/1)^(1*1))-25000)*.07)+25000
and then take the balance and replace the original principle and do the calculation over 39 more times. But, there must be a way to create a function or a single calculation that gets you to the answer at 40 years?

Not sure if this does it (in terms of a graphable function):
y = (((25000(1+(0.04)/1)^(1*x))-25000)*.07)+25000)(1+(0.04)/1)^(1*x)

]]> By: Bogdan http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/#comment-168778 Bogdan Thu, 31 Jan 2008 11:19:26 +0000 http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/#comment-168778 I love these series.

]]> By: Angie http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/#comment-9115 Angie Mon, 05 Mar 2007 18:03:58 +0000 http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/#comment-9115 These spreadsheets are excellent. I have not beable to find answers needed to finish my son’s homework without going back to college myself! Thanks for the help.

]]> By: Daniel http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/#comment-7624 Daniel Sun, 25 Feb 2007 05:29:06 +0000 http://www.thesimpledollar.com/2007/02/24/an-introduction-to-compound-interest-with-spreadsheets-part-2-monthly-compound-interest-aprs-and-apys/#comment-7624 These calculations are exactly what I’ve been looking for. I couldn’t find a way to do it without a lot of manual math, or odd calculators that don’t show the formulas for achieving the results. Thank you so much!

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