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

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 the 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 thereafter, you will be building formulas that are flexible enough to accommodate other values you type into the Givens box later.

2 800 Line Number Givens: Principal Compounds APR 5.70% Interest Total 800.00 Quarter Principal 0 1 800.00 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Methods 18 Qtr. #18 Iteration (Steps) "=c25+d25 19 20 Qtr. #18 Formula 21 22 23 24 "-800x(1+0.057/4) 25 Qtr. #18 Excel Function 26 "-FV(D4/D3,B25,0,D2) 27 28 29 30 31 32 33 34 35 36 Total: $