Interest Rate on $1 Table Creator
How the Calculator Works:
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Future Value (FV) as Columns:
- Specify how many columns you want in the table (up to 20).
- Input the starting future value (FV), which represents the target amount you want $1 to grow into.
- Choose the increment for each column. For example, if the starting FV is $3.00 and the increment is $0.70, the columns would display $3.00, $3.70, $4.40, etc.
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Periods (n) as Rows:
- Specify how many rows you want in the table (up to 50).
- Input the starting period (n), which represents the number of periods (usually years) the investment will grow.
- Choose the increment for each row. For example, if the starting period is 10 and the increment is 1, the rows would display periods of 10, 11, 12, etc.
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Calculating Interest Rate (I): The interest rate needed to grow $1 to the specified future value over the given period is calculated using the formula:
Where:
- is the future value.
- is the number of periods (typically years).
- The result is multiplied by 100 to express the interest rate as a percentage.
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Generating the Table: The calculator generates a table where:
- Each column represents a future value (FV).
- Each row represents a period (n).
- The table cells contain the interest rate (I%) required to grow $1 to the future value in that column over the period in that row.
Example:
Let’s say you want to calculate the interest rate to grow $1 into various future values over 10–15 periods:
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Columns (Future Values):
- Start with $3.00 and increase by $0.70 for each column.
- This gives future values: $3.00, $3.70, $4.40.
-
Rows (Periods):
- Start with period 10 and increment by 1 for each row.
- This gives periods: 10, 11, 12, 13, 14, 15.
The table will calculate the interest rate needed to grow $1 into $3.00, $3.70, and $4.40 over 10–15 periods.
Sample Calculation:
For a future value (FV) of $3.00 and a period (n) of 10:
So, the interest rate required to grow $1 to $3.00 over 10 years is 11.612%.
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