| Thursday, 05 January 2023 |
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Good morning [%first_name |Dear Reader%],
Another new year is here! And like the Resolution Rhyme we published in the first Ka-Ching! edition of 2022 (which still holds good), we’ve got a few more money hacks for you today. For 2023 and beyond.
Many useful tools for investors hide in plain sight. The financial functions in Microsoft Excel, for instance. On the Excel screen, these cool calculators can be found under ‘fx’ in the formula bar, under the ‘Financial’ category.
And many of them answer important questions often asked by investors.
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What is the return on my investment?—RATE
A fundamental question, and one that the RATE function is perfect for.
Say you invest Rs 1 lakh (~US$1,200) in a deposit for five years and the maturity amount is Rs 1.5 lakh (US$1,810). The annualised return is 8.45%. Rearranging the compound interest formula—Amount = Principal * [(1+rate )^ period]—will give the number, but it’s cumbersome.
The RATE function gives the answer in a jiffy.
