In cell C8, create a formula using the FV function to calculate the accumulated savings amount using monthly rate, savings period, and savings amount values in cells C5:C7. In excel explain
To create a formula in Excel using the FV function to calculate the accumulated savings amount in cell C8, you can use the following formula:
`=FV(C5/12, C6*12, -C7)`
Here's a breakdown of the formula:
- `C5/12`: This is the monthly interest rate, which is calculated by dividing the annual interest rate in cell C5 by 12 to get the monthly rate.
- `C6*12`: This is the total number of months in the savings period, which is calculated by multiplying the number of years in cell C6 by 12.
- `-C7`: This is the savings amount deposited each month, entered as a negative value because it represents an outgoing cash flow.
By entering this formula in cell C8, you will calculate the accumulated savings amount based on the monthly rate, savings period, and savings amount values in cells C5:C7.