**Compound Interest - How To Calculate**

Q: How do I calculate compound interest using Excel? A: Compound interest is interest that's calculated both on the initial principal of a deposit or loan , and on all previously accumulated interest. For example, let's say you have a deposit of $100 that earns a 10% compounded interest rate. The $100 grows into $110 after the first year, then $121 after the second year. Each year the base increases by 10%. The reason the second year's gain is $11 instead of $10 is as a result...