Interest Rate on $1 Table Creator
Create a printable interest rate table to lookup the interest rate required to grow $1 to a future value amount.
Starting with the formula for future value
and solving the equation for interest rate (i), we use the formula
replacing the present value sum with $1, PV = $1
let I = i * 100 then the rate in percentage form is given by
where FV is the future value, PV is the investment principal amount = $1, i is the interest rate in decimal form and n is the period number. PV is the amount of money = $1 to be invested at the end of each equal period which will grow to FV after n Number of Time Periods and at an Interest Rate i per period. i is in decimal form for calculations.
If you decide to drop the $1 your final formula is
You can, for example, look up I in the table to find an applicable interest rate for your desired investment performance.
Example Use: You want to invest $10,000 and triple your investment over time. How many years will it take for you to triple your investment and at what interest rate?
- Create a table that includes FV = $3.00 since the table is based on $1.00 investments. Also include a sufficient range of rows for n.
- Start 5 colums of FV at 2 with increments of 0.5
- Start 20 rows of n at 10 with increments of 1
- Look at the FV column for $3.00.
- In the $3.00 column you can lookup interest rates and the corresponding number of periods, n, it will take to triple your investment.
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