Decompounding formula in excel

Question : Decompounding formula in excel

Say the annual rate is 25%.

What is the formula to de-compound it to semi-annual, quarterly and monthly.

Also, what is the formula to compound back the 3 mentioned terms back to an annual rate.


Solution : Decompounding formula in excel


where X is rate
n is periods

so for 25% quarterly
= 5.7% compounding per quarter

to re compound