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Calculate monthly contributions
How do you calculate an investment that has monthly contributions of, say
$200, every month with a 16% annual rate of return (i.e. $200 on June 1st, $200 on July 1st, etc.)? This is so that I can get an idea of what the long term investment will return. I would ideally like to use something like this to track my personal savings/investment. If there is another thread let me know. Any help would be greatly appreciated. |
#2
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Calculate monthly contributions
On Jun 11, 10:45 pm, Chris T.
wrote: How do you calculate an investment that has monthly contributions of, say $200, every month with a 16% annual rate of return (i.e. $200 on June 1st, $200 on July 1st, etc.)? I assume that 16% is the APY -- that is, the expected compounded rate. Then, the monthly rate can be computed with one of the following equivalent formulas: =rate(12,0,-1,1+16%) =(1+16%)^(1/12) - 1 If 16% is the annual interest rate, the monthly rate is simply 16%/12. This is so that I can get an idea of what the long term investment will return. Over 20 years, the balance of the investment would be: =fv(A1, 12*20, -200, 0) where A1 is the monthly rate (one of the above). |
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