Building Marcus Savings Calculator in Excel
I'm trying to do some analysis in Google Sheets which involves putting money in Marcus' High Yield savings account. For some reason, I can't seem to get my numbers to match the values from their savings calculator.
I'm using the value of interest rate to be 2.25%, compounded daily as mentioned here, and the principal being 000, with 0 being deposited every month for a total period of 2 years.
As per their calculator, this results in an interest of 7, whereas with the below formula, I'm getting 949 or 9 as the interest using the formula below.
FV(2.25%/365, 365 * 2, -100/30, -10000, 0) - 10000 - 2400
Any idea what I'm doing wrong?
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The 2.25% is an annual effective rate (same as APY)
e = 0.0225
Converting the annual effective rate to a monthly rate
r = (1 + e)^(1/12) - 1 = 0.00185594
Compounding the principal, with n = 24
10000 (1 + r)^n = 10460.2625
Compounding the payments, with d = 100 and payment at month-end.
fv = (d ((1 + r)^n - 1))/r = 2451.9379
Adding together
2451.9379 + 10460.2625 = 12907
In Excel
=FV(r, n, -d, -10000)
=FV(0.00185594, 24, -100, -10000)
£12,906.99
interest = 12907 - 10000 - 2400 = 507
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