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Hi, I am working on a regular payments savings plan spreadsheet assignment.  I'm having trouble understanding what a compound is and how to find the interest.

Hi, I am working on a regular payments savings plan spreadsheet assignment.  I'm having trouble understanding what a compound is and how to find the interest.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Hi, I am working on a regular payments savings plan spreadsheet assignment. 

I'm having trouble understanding what a compound is and how to find the interest. 

This image displays a spreadsheet titled "Activity 4 Regular Payments Savings Plan Student Template.xlsx," designed for educational purposes. It outlines a simple savings plan model with regular payments. Below is a detailed description and transcription of the content: ### Spreadsheet Details: #### Header: - **File Menu Options:** File, Edit, Insert, Format, Help - **Font and Text Options:** Font set to "Times," Size 12, with options for Bold, Italics, Underlined, Text Alignment, and more. #### Input Section: - **Line Number:** 4 - **Givens:** - **Principal:** $545.00 - **Payment:** $43.00 - **APR (Annual Percentage Rate):** 3.70% - **Compounds:** (Field left empty) #### Savings Plan Table: - **Columns:** Month, Principal, Interest, Payment, Total - The table starts at row 9 and includes numerical entries for months 1 through 11 (rows 10 to 20) with space for corresponding financial data entries. The spreadsheet is a template designed to calculate and visualize the growth of a savings plan over time, factoring in regular payments and interest accumulation. It is intended for student use in understanding financial planning concepts.
Transcribed Image Text:This image displays a spreadsheet titled "Activity 4 Regular Payments Savings Plan Student Template.xlsx," designed for educational purposes. It outlines a simple savings plan model with regular payments. Below is a detailed description and transcription of the content: ### Spreadsheet Details: #### Header: - **File Menu Options:** File, Edit, Insert, Format, Help - **Font and Text Options:** Font set to "Times," Size 12, with options for Bold, Italics, Underlined, Text Alignment, and more. #### Input Section: - **Line Number:** 4 - **Givens:** - **Principal:** $545.00 - **Payment:** $43.00 - **APR (Annual Percentage Rate):** 3.70% - **Compounds:** (Field left empty) #### Savings Plan Table: - **Columns:** Month, Principal, Interest, Payment, Total - The table starts at row 9 and includes numerical entries for months 1 through 11 (rows 10 to 20) with space for corresponding financial data entries. The spreadsheet is a template designed to calculate and visualize the growth of a savings plan over time, factoring in regular payments and interest accumulation. It is intended for student use in understanding financial planning concepts.
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