I am trying to figure out a function that can be used to find the balance in
a savings account after a period of time. To make it a little more
complicated, I want to include a monthly deposit during that time. Is there
a function that can do this? I am trying to develop a savings plan that will
be for a specific purchase I want to make in 5 years and want to know how
much I need to put put in the account monthly.

For example.....
If I have an account with $500 and deposit $50 dollars every month for the
next 5 years and there is a 25% annual interest rate...how much will be in it
after 5 years?

Or opposite, although I know how to do what-if anaysis if that is what it
takes...
If I want to save 10,000 in 5 years, how much would I have to deposit
monthly.

These are not the specific numbers but this is what I want it to do for me
for several different saving's projects I want to do.

I tried a couple of the suggested functions, but they didn't come out right,
and I could find anything that included adding to the account throughout the
time period. Does anyone know how to do this? And I am a not clear on all
the financial terms they use in the help mode, so if you can explain it as
simply as possible I would really appreciate it. Thanks.

Hi,

Q1. Starting with $500 and paying $50 for 5 years

=FV(25%/12,60,-50,-500,1)

Q2. Payment to accrue $10000 over 5 years

=PMT(25%/12,60,0,-10000)

Just a small point, can I have the name of your bank that pays 25% please :)

Mike

"Brigiite" wrote:

I am trying to figure out a function that can be used to find the balance in
a savings account after a period of time. To make it a little more
complicated, I want to include a monthly deposit during that time. Is there
a function that can do this? I am trying to develop a savings plan that will
be for a specific purchase I want to make in 5 years and want to know how
much I need to put put in the account monthly.

For example.....
If I have an account with $500 and deposit $50 dollars every month for the
next 5 years and there is a 25% annual interest rate...how much will be in it
after 5 years?

Or opposite, although I know how to do what-if anaysis if that is what it
takes...
If I want to save 10,000 in 5 years, how much would I have to deposit
monthly.

These are not the specific numbers but this is what I want it to do for me
for several different saving's projects I want to do.

I tried a couple of the suggested functions, but they didn't come out right,
and I could find anything that included adding to the account throughout the
time period. Does anyone know how to do this? And I am a not clear on all
the financial terms they use in the help mode, so if you can explain it as
simply as possible I would really appreciate it. Thanks.

Thank you....and I don't know what the bank pays (or if the bank will even be
around in a week..lol)...I was just throwing out numbers. I have a couple 5
year and 10 year goals I want accomplish that requires this function...I will
be using it alot.

What if the bank has a variable interest rate....like if you have 5000 in
your account you get one APR and when it goes over that amount the interest
rises also, etc?

"Mike H" wrote:

Hi,

Q1. Starting with $500 and paying $50 for 5 years

=FV(25%/12,60,-50,-500,1)

Q2. Payment to accrue $10000 over 5 years

=PMT(25%/12,60,0,-10000)

Just a small point, can I have the name of your bank that pays 25% please :)

Mike

"Brigiite" wrote:

I am trying to figure out a function that can be used to find the balance in
a savings account after a period of time. To make it a little more
complicated, I want to include a monthly deposit during that time. Is there
a function that can do this? I am trying to develop a savings plan that will
be for a specific purchase I want to make in 5 years and want to know how
much I need to put put in the account monthly.

For example.....
If I have an account with $500 and deposit $50 dollars every month for the
next 5 years and there is a 25% annual interest rate...how much will be in it
after 5 years?

Or opposite, although I know how to do what-if anaysis if that is what it
takes...
If I want to save 10,000 in 5 years, how much would I have to deposit
monthly.

These are not the specific numbers but this is what I want it to do for me
for several different saving's projects I want to do.

I tried a couple of the suggested functions, but they didn't come out right,
and I could find anything that included adding to the account throughout the
time period. Does anyone know how to do this? And I am a not clear on all
the financial terms they use in the help mode, so if you can explain it as
simply as possible I would really appreciate it. Thanks.

Hi,

You will be lucky to find 5% these days. Regarding a variable interest
rate, generally that means that the interest rate is adjusted by the bank
based on something like the federal funds rate or some other benchmark. If
you have a variable based on amount in the bank then the formula is a whole
lot more complicated

=-FV(7%/12,60-MAX(IF(-FV(5%/12,ROW(A1:A60),200)<1000,ROW(A1:A60),0)),200,MAX(I F(-FV(5%/12,ROW(A1:A60),200)<1000,-FV(5%/12,ROW(A1:A60),200),0)))

This is an array formula and must be enter by pressing Shift+Ctrl+Enter.
I am assuming 5% annual rate up to $999.99 and 7% after that. With 200 per
month payments.

--
Thanks,
Shane Devenshire


"Brigiite" wrote:

Thank you....and I don't know what the bank pays (or if the bank will even be
around in a week..lol)...I was just throwing out numbers. I have a couple 5
year and 10 year goals I want accomplish that requires this function...I will
be using it alot.

What if the bank has a variable interest rate....like if you have 5000 in
your account you get one APR and when it goes over that amount the interest
rises also, etc?

"Mike H" wrote:

Hi,

Q1. Starting with $500 and paying $50 for 5 years

=FV(25%/12,60,-50,-500,1)

Q2. Payment to accrue $10000 over 5 years

=PMT(25%/12,60,0,-10000)

Just a small point, can I have the name of your bank that pays 25% please :)

Mike

"Brigiite" wrote:

I am trying to figure out a function that can be used to find the balance in
a savings account after a period of time. To make it a little more
complicated, I want to include a monthly deposit during that time. Is there
a function that can do this? I am trying to develop a savings plan that will
be for a specific purchase I want to make in 5 years and want to know how
much I need to put put in the account monthly.

For example.....
If I have an account with $500 and deposit $50 dollars every month for the
next 5 years and there is a 25% annual interest rate...how much will be in it
after 5 years?

Or opposite, although I know how to do what-if anaysis if that is what it
takes...
If I want to save 10,000 in 5 years, how much would I have to deposit
monthly.

These are not the specific numbers but this is what I want it to do for me
for several different saving's projects I want to do.

I tried a couple of the suggested functions, but they didn't come out right,
and I could find anything that included adding to the account throughout the
time period. Does anyone know how to do this? And I am a not clear on all
the financial terms they use in the help mode, so if you can explain it as
simply as possible I would really appreciate it. Thanks.

Thanks, that's complicated, but I think I can work through that equation
slowly. I know understand that setup when I look through it, except for the
ROW. what is that?
A little off the Excel subject- I will find out tomorrow what my bank
actually pays. scary to think I'm going to start putting money away now when
there is so much instability in the banks right now. I know this isn't
excel related, but if I wanted to invest money in a similar way but not in a
savings account, do you know of anything that carries less risk? I know
banks are supposed to be secured somehow, but I can't help but wonder if
their confidence in not repeating the great depression is only for show and
if there really is a true threat.

"ShaneDevenshire" wrote:

Hi,

You will be lucky to find 5% these days. Regarding a variable interest
rate, generally that means that the interest rate is adjusted by the bank
based on something like the federal funds rate or some other benchmark. If
you have a variable based on amount in the bank then the formula is a whole
lot more complicated

=-FV(7%/12,60-MAX(IF(-FV(5%/12,ROW(A1:A60),200)<1000,ROW(A1:A60),0)),200,MAX(I F(-FV(5%/12,ROW(A1:A60),200)<1000,-FV(5%/12,ROW(A1:A60),200),0)))

This is an array formula and must be enter by pressing Shift+Ctrl+Enter.
I am assuming 5% annual rate up to $999.99 and 7% after that. With 200 per
month payments.

--
Thanks,
Shane Devenshire


"Brigiite" wrote:

Thank you....and I don't know what the bank pays (or if the bank will even be
around in a week..lol)...I was just throwing out numbers. I have a couple 5
year and 10 year goals I want accomplish that requires this function...I will
be using it alot.

What if the bank has a variable interest rate....like if you have 5000 in
your account you get one APR and when it goes over that amount the interest
rises also, etc?

"Mike H" wrote:

Hi,

Q1. Starting with $500 and paying $50 for 5 years

=FV(25%/12,60,-50,-500,1)

Q2. Payment to accrue $10000 over 5 years

=PMT(25%/12,60,0,-10000)

Just a small point, can I have the name of your bank that pays 25% please :)

Mike

"Brigiite" wrote:

I am trying to figure out a function that can be used to find the balance in
a savings account after a period of time. To make it a little more
complicated, I want to include a monthly deposit during that time. Is there
a function that can do this? I am trying to develop a savings plan that will
be for a specific purchase I want to make in 5 years and want to know how
much I need to put put in the account monthly.

For example.....
If I have an account with $500 and deposit $50 dollars every month for the
next 5 years and there is a 25% annual interest rate...how much will be in it
after 5 years?

Or opposite, although I know how to do what-if anaysis if that is what it
takes...
If I want to save 10,000 in 5 years, how much would I have to deposit
monthly.

These are not the specific numbers but this is what I want it to do for me
for several different saving's projects I want to do.

I tried a couple of the suggested functions, but they didn't come out right,
and I could find anything that included adding to the account throughout the
time period. Does anyone know how to do this? And I am a not clear on all
the financial terms they use in the help mode, so if you can explain it as
simply as possible I would really appreciate it. Thanks.