Simple Vs. Compound Interest Using a Spreadsheet

Simple Vs. Compound Interest

• Open your GoogleDrive account. • You just set it up in English class.

Simple Vs. Compound Interest

• Once you log on, click on “New”.

– A drop-down menu will appear.

– Select “Google Sheets”

Simple Vs. Compound Interest

• The new spreadsheet that opens up should look like this:

• Title your spreadsheet :

LAST NAME, First Initial – Interest – You do this by clicking on the words “Untitled spreadsheet” which highlights the title

and lets you change it.

Simple Vs. Compound Interest

• TO GET CREDIT FOR THIS ASSIGNMENT, you MUST share your spreadsheet with me:

HaleL@nv.ccsd.net

• Click on the “Share” button in the upper right-hand corner.

Simple Vs. Compound Interest

• When you click “Share” this dialogue box will open.

• Click “Advanced” in bottom right corner.

Simple Vs. Compound Interest

• Enter my email into the box.

– HaleL@nv.ccsd.net

• Make sure “Can edit” is showing. If it’s not, click on the drop-down menu and select it.

• Un-check the “Notify people via email” box.

• Click “OK”

You should see your Google address here.

Simple Vs. Compound Interest

Now you’re ready to set up your spreadsheet!

• 1st – Select all of the cells in the spreadsheet by clicking in A1 and then pushing “Ctrl A”. EVERYTHING SHOULD GO BLUE.

• Push the “Wrap Text” button so that the cells will expand to fit what you type.

Simple Vs. Compound Interest

• Select cells A1 through D1 by clicking in A1, then holding down Shift and clicking D1.

• Merge these 4 cells into 1 cell by clicking.

Enter in the Column Headings just like you see them below.

Select all of these headings and center them by clicking here:

Make these cells bold by clicking the “B” button.

Change the color of these header cells by clicking here:

Simple Vs. Compound Interest

Spreadsheet Basics

1.) Cells are named based on their column and row. A1 is in column A and row 1.

2.) To edit a cell, double click in the cell and begin typing.

EVERY TIME YOU FINISH EDITING A

CELL, press ENTER to leave that cell.

Do not try to click on another cell to

leave.

5.) Font options…

3.) To SELECT multiple cells, click on the first one you want and then hold and drag the mouse over the others you want to select.

4.) To combine multiple cells into one cell, like this (see above), select the cells you want, then click the “MERGE” button at the top.

6.) To change the width of a column, hover mouse over the boundary of the columns until the fat/white + turns into :

7.) To tell the spreadsheet that you want it to format the answer it gives as money and do the rounding for you, select the cells and click here.

Spreadsheet Basics 8.) To copy what is in 1 cell to the cells below it in a column, hover the mouse over the lower right corner of the cell until the fat/white + turns into a skinny/black +.

9.) While the + is skinny/black, click and drag down through as many cells as you’d like to copy input into.

10.) Let go of the mouse button and what you had typed in the original cell will appear in all of the cells you dragged through.

HINT: This works with formulas too!

OR if you know that the math you will be doing in other cells will follow the same pattern, you can use cell names like here: When your formula is complete PUSH ENTER to close the cell. This is how to get your spreadsheet to REALLY work for you!

Spreadsheet Basics– Using Formulas 11.) To calculate the PRODUCT of two #s, double click in the cell that you want your answer to be in and type = # * # (no spaces) What you enter can be actual #s like here:

Spreadsheet Basics– Using Formulas 12.) If you want to add, subtract, or divide 2 numbers or cells, follow the same procedure described in step 10.) but type in a +, -, / as desired. Then PUSH ENTER to close the cell.

WARNING!

• To receive credit for this part of the assignment YOU MUST USE FORMULAS WITH CELL NAMES.

– This will save you time!

– You should NOT have to use a calculator at all during this assignment!

Your Assignment

1.) Re-create table #2 from last class’ notes using FORMULAS.

– (This goes really fast if you use the + drag trick after you finish Year 1! (See slide 9))

Your Assignment 2.) Re-create table #4 from last class’ notes using FORMULAS. To get a quicker start… select the header rows, push CTRL C to copy and then CTRL V to paste these 2 rows below your first table.

Don’t forget to adjust the title of this new table.

Your Assignment 2.) Continued… Once you have successfully recreated table 4, add a new cell to the header row of this table.

Enter a formula here that will tell you how much more interest you have earned with semiannual compounding (table 4) instead of just annual compounding (table 2).

Your Assignment 3.) Create a new table (2 rows below table #4) that shows our same investment (no additional money added), but compounded MONTHLY. Hint: Change the “Year” column to “Months”, so that each row represents 1 month. Hint #2 – How will your interest formula change on this one??

If you have been using cell names and formulas, doing this will take minutes using a spreadsheet, whereas doing it by hand would be TORTURE!!!

How does compounding monthly compare (this new table) to annual compounding (first table you created)?

Your Assignment 4.) Create a new table (2 rows below table #4) that shows our same investment (no additional money added), but compounded SEMIMONTHLY. Hint: Watch that interest formula!

Copy and paste, as well as the dragging trick with formulas will get this done quickly!!!

How does compounding semimonthly compare (this new table) to annual compounding (first table you created)?