If the interest is compounded more than once a year

multiply  the Number of Periods
divide the Interest Rate 

by the number of times the interest is compounded each year. 

 

Example 

You invest $10,000 at 4% interest. The interest is compounded monthly. How much is your investment worth in 10 years time?

Step 1

Present Value: 

Future Value:

Number of Periods:

Interest  Rate(%):  

Enter 10,000 as the Present Value. Enter .333333 (4 divided by 12) for interest rate and 120 (10 times 12) for the number of Periods.

Step 2

Present Value: 

Future Value:

Number of Periods:

Interest  Rate(%):  

 

Click on Calculate in the 2nd row. 
14908.33 appears against Future Value.
This is the amount your investment is worth in 10 years time.