You just use the compound interest formula:
Principle * (1 + Rate / Time) ^ Time
For Cell C2 you want this formula:
Column A is deposit date
Column B is deposit amount
Cell C1 is today's date
Cell D1 is the annual interest rate
Most savings accounts that I know of compound interest daily and credit earned interest ...
Banks don't necessarily use the same formula, but in most countries they must disclose the effective interest you'd be paying (which may vary from the nominal interest due to extra charges and calculation differences) and explain how your payment is calculated.
In some countries banks are required to precalculate and provide the amortization schedule for the ...
I would say that all of the reasons you list in your question are valid, and I would add the following...
You are in the landscaping business, not the accounting business. If you manage everything in spreadsheets, at least one of you has to become the bookkeeper and leave the landscaping to the others. Spreadsheets are "agnostic" in how you use them, so you ...
The "Future Value" function does this.
=FV(rate, number_of_periods, payment_amount, present_value, [end_or_beginning])
=FV(2%, 12, -100, -400, 0)
Note that the payment_amount and present_value should both be entered as negative numbers, otherwise it outputs a negative value
See the Google support article for more info and related functions.
Bren's comment is right on the mark.
The typical solution is to divide all bills by 5, and for special items, the person buying it just marks his name that it's not community food.
Your attempt at a granularity level this detailed is admirable, but produces false results. What happens when I claim to be a zero percent milk drinker but when someone gives me ...
0.250% of what? Because $100 x 0.25% = $25. How am I getting $0.02 a month?
You're confusing "25%" (twenty-five percent) with "0.25%" (one quarter of one percent).
Your credit union is making interest payments twelve times per year. Your yearly interest rate is 0.25%. Divide that by 12 to give the monthly interest rate: 0.0208333%.
So, if you have $100 in ...
I think your reasons are good. Fundamentally accounting software is built to ensure you record your accounting data effectively with minimal mistakes and good auditing. But you still need to use the tool properly to get the benefit.
One other advantage is that many accountants are familiar with, say QuickBooks, and can do your accounts more effectively if ...
For a personal finance forum, this is too complicated for sustained use and you should find a simpler solution.
For a mathematical exercise, you are missing information required to do the split fairly. You have to know who overlaps and when to know how to do the splits. For an extreme example, take your dates given:
Considering 100 days of calculation ...
The MIRR formula uses the finance rate to discount negative cash flows, but since the only negative cash flow in the example in in the current period, there's nothing to discount. It's meant to solve problems with IRR like when there are both positive and negative cash flows, which can result in multiple answers for IRR.
The example they give isn't a good ...
The mathematics on which the usual formula is based is that the sum of the payments d, each discounted to present value (PV) by 1/(1 + r)^k, should equal the initial (present value) value of the loan s.
The summation can be converted to a formula by induction, so
r is the periodic interest rate, so if the APR is a nominal annual rate compounded monthly r = ...
An improved approximation using your growth rate assumption would be:
value at year end = (value at year start * 1.05) + (total monthly deposits * 1.025)
apply the full growth rate (5%) only to the beginning-of-year balance, and,
apply half of the growth rate (2.5%) to the total monthly deposits made in the year.
Why half? Consider: If each monthly ...
When I was in grad school (at an engineering school) my apartment-mates and I came up with this formula:
We each bought 100% of the food we intended to consume.
We each consumed 0% of the food that we did not buy ourselves.
The solution uses the PMT function which has the syntax:
PMT(rate, nper, pv, [fv], [type])
Fv is Optional: The future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
Type is Optional: The number 0 (zero) or 1 and indicates when ...
I would add to your reasons:
QuickBooks makes it easy to send statements or invoices to customers that request them
QuickBooks has a number of built in reports that may give you insight into how your business is doing (revenue month by month through the year, putting customers into categories that reflect how you landed them and then comparing the ...
To calculate the variance of a portfolio you also need the weights of each asset (ω(i)), and the correlation (or covariance) between each asset (ρ(ij) or COV(ij)). From there, the formula is:
σ²(p) = ω²(1)σ²(1) + ω²(2)σ²(2) + ω²(3)σ²(3)
If you have covariances ...
The formula for determining the number of payments (months) you'll need to make on your loan is:
where i=monthly interest rate (annual rate / 12), A=loan amount (principal), and P=monthly payment.
To determine the total interest that you will pay, you can use the following formula:
where P=monthly payment, N=number of payments (from above formula), and A=...
I believe the 2.63% is the rate. That's what:
gives, as does:
(with 1238 in R2C2:R21C2, -32880 in R22C2, 1/1/95 through 1/1/14 in R2C1:R21C1, and 12/31/14 in R22C2) and if you check that by "hand", that is in some column, in rows 2-21, put:
then sum those, you get $32,...
So your whole approach, and the attempt to scale this is flawed. You will alienate roomates, provoke arguments, and make everyone's life more difficult. There are too many variables and unforeseen possibilities. For instance:
"Why should I have to pay for Joe to go buy the expensive organic milk when I'm fine with the cheap stuff?"
"I planned on being ...
The 2.25% is an annual effective rate (same as APY)
e = 0.0225
Converting the annual effective rate to a monthly rate
r = (1 + e)^(1/12) - 1 = 0.00185594
Compounding the principal, with n = 24
10000 (1 + r)^n = 10460.2625
Compounding the payments, with d = 100 and payment at month-end.
fv = (d ((1 + r)^n - 1))/r = 2451.9379
(1+return)/(1+inflation)-1 would be more accurate (it discounts each year's return by the level of inflation), but your formula is often used as an easy estimate for small levels of inflation:
(1.11 / 1.015) - 1 = 9.36%
which is fairly close to the 9.5% you use. To convert to monthly raise it to the 1/12 power:
(1.11 / 1.015)^(1/12) - 1 = 0.748%
Your formula gives you daily compounding, assuming the annual interest rate was calculated on 360 days (a slightly shorter ‘year’ than a natural year, but not unheard of in the finance industry).
If K15 is your ‘annual’ interest rate, K15/360 is your daily interest rate. (If you have a 10% rate, K15 should be 0.1, not 1.1. The extra 1 makes the interest ...
Self-answer—how awfully embarrassing, I had a bug in how I was handling dividends, in both
the Google Sheets spreadsheet and
(I was basically not reinvesting dividends…)
With this correction, the result is better: the excess return, investing the CPI every month, over the last forty years has been 5.8%.
I noticed that the ...
Use this formula in Google Sheets:
This will bring up a list of the company's financial performance.
Now I try to cumulate the interest (for 1 month) with following
formula: CUMIPMT(annualRate/12, loanYears*12, loanReceived, 1, 2, 0) -
I receive 237
That formula is calculating the first two months. That is why the answer, 237, is about double the 119 from the first formula.
The solution to this problem is somewhat like grading on a curve. Use the consumption ratio multiplied by the attendance (which is also a ratio, out of 100 days) to calculate how much each person owes. This will leave you short. Then add together all of the shares in a category, determine the % increase required to get to the actual cost of that category, ...
Assuming the rate is 4.35% nominal, compounded monthly, in Excel the formula would be
resulting in -$1,368.98
You can also use the mathematical formula here:
r = 0.0435/12 = 0.003625
PV = 275000
n = 30*12 = 360
P = r (PV)/(1 - (1 + r)^-n) = 1368.98
Why use spreadsheets rather than writing your forms and formulas directly in a programming lanuage?
Because you've got better things to do than reinvent the wheel, right?
clarification, since the point apparently wasn't clear:
Using a spreadsheet means you're writing and organizing and maintaining the formats and formulas yourself. ...
Since this is a cooperative I'm guessing your partners may want to be able to view the books so another key point you may want to consider is collaboration.
Who is going to keep the "master" .xls file?
Where do they go to get the latest file and how do you ensure that you're not making conflicting or duplicated entries or possibly losing data when you ...