Purpose: This activity provides students with the opportunity to reinforce the power of compounding interest using a realistic principal amount and annual percentage rate (APR).

Directions: Using the template you have downloaded and the prototype figure below, construct a compound interest spreadsheet using three different methods (iteration steps, formula and excel function) that will arrive at very same balance if properly done. Be sure to type in the givens box the same principle, compound and APR as the prototype figure. From quarter #1(row 8) and therefore you will be building formulas that are flexible enough to accommodate other values you type into the givens box later.

GIVEN:

LINE NUMBER -12

PRINCIPAL-200

APR- 4.2%