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    Simple Vs Compound Interest

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    Kaushik Samanta
    The document compares the future value of an initial investment of $65,000 over 40 years using simple vs compound interest at a rate of 15% per year. It shows that with compound interest the future value is much higher, reaching over $17 million after 40 years compared to around $6.5 million with simple interest.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd

    Simple Vs Compound Interest

    Uploaded by

    Kaushik Samanta
    13 views6 pages
    The document compares the future value of an initial investment of $65,000 over 40 years using simple vs compound interest at a rate of 15% per year. It shows that with compound interest the future value is much higher, reaching over $17 million after 40 years compared to around $6.5 million with simple interest.

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    Original Title

    Simple vs Compound Interest

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    The document compares the future value of an initial investment of $65,000 over 40 years using simple vs compound interest at a rate of 15% per year. It shows that with compound interest the future value is much higher, reaching over $17 million after 40 years compared to around $6.5 million with simple interest.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    13 views6 pages

    Simple Vs Compound Interest

    Uploaded by

    Kaushik Samanta
    The document compares the future value of an initial investment of $65,000 over 40 years using simple vs compound interest at a rate of 15% per year. It shows that with compound interest the future value is much higher, reaching over $17 million after 40 years compared to around $6.5 million with simple interest.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 6

    65000

    15%

    Period
    0
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    38

    FV (Simple Interest) FV (Compound Interest)


    65,000.00
    65,000.00
    74,750.00
    74,750.00
    84,500.00
    85,962.50
    94,250.00
    98,856.88
    104,000.00
    113,685.41
    113,750.00
    130,738.22
    123,500.00
    150,348.95
    133,250.00
    172,901.29
    143,000.00
    198,836.49
    152,750.00
    228,661.96
    162,500.00
    262,961.25
    172,250.00
    302,405.44
    182,000.00
    347,766.26
    191,750.00
    399,931.20
    201,500.00
    459,920.87
    211,250.00
    528,909.01
    221,000.00
    608,245.36
    230,750.00
    699,482.16
    240,500.00
    804,404.48
    250,250.00
    925,065.16
    260,000.00
    1,063,824.93
    269,750.00
    1,223,398.67
    279,500.00
    1,406,908.47
    289,250.00
    1,617,944.74
    299,000.00
    1,860,636.45
    308,750.00
    2,139,731.92
    318,500.00
    2,460,691.71
    328,250.00
    2,829,795.46
    338,000.00
    3,254,264.78
    347,750.00
    3,742,404.50
    357,500.00
    4,303,765.18
    367,250.00
    4,949,329.95
    377,000.00
    5,691,729.45
    386,750.00
    6,545,488.86
    396,500.00
    7,527,312.19
    406,250.00
    8,656,409.02
    416,000.00
    9,954,870.38
    425,750.00
    11,448,100.93
    435,500.00
    13,165,316.07

    Pick a Year:

    Future Value

    PV
    Rate

    33

    20,000,000.00
    33.00

    Compound vs Simple In
    0.00 8% per year for 40 Y

    33.00 386750.00
    18,000,000.00
    33.00
    16,000,000.00

    ###

    14,000,000.00
    12,000,000.00
    10,000,000.00
    8,000,000.00
    6,000,000.00
    4,000,000.00
    2,000,000.00
    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

    445,250.00
    455,000.00

    15,140,113.48
    17,411,130.51

    Compound vs Simple Interest


    8% per year for 40 Years

    6,545,488.86

    386,750.00
    5

    10

    15

    20

    25

    30

    35

    Years
    FV (Simple Interest)

    FV (Compound Interest)

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

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


    Excel tutorials.

    40

    33

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