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Description
Description
AvgBalIntλ()
Calculates interest on the average of opening and closing balances.
This avoids having to use VBA or enabling iterative calculations when calculating interest on the average of opening and closing balances.
NOTE! This version is intended for traditional models - not dynamic array models.
Syntax
Syntax
AvgBalIntλ( InterestRate, [OpeningBalance], Additions)
Arguments:
Arguments:
InterestRate
(Required) The APR divided by the number of periods in a year.
OpeningBalance
(Required) The opening balance.
Additions
(Optional) Total of amounts, other than interest, to add/sub to closing balance. Default = 0.
Integrity Check
Integrity Check
To know this function is working as intended, add a formula that averages the opening and closing balance and then applies the rate (see animation).
=AVERAGE( <opening>, <closing>) * APR / 12
Then add a formula that checks that the absolute value of AvgBalIntλ's result less the check function's result is within tolerance.
=ABS( <AvgBalInt result> - <check result>) < .001
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