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#1
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Saving for College
I have to make a plan for a monthly payment deposit for the next 15 years.
The account pays 4.5% annual interest, compounded monthly. I have to use the FV function to determine the % of college tuition saved. Out of State Annual Tuition=40000 Rate(per month)=4.5%/12 Nper(number of monthly payments)=15*12 Pmt(payment per period)=375 Percentage of Tuition Saved=FV/Tuition for 4 years |
#2
Posted to microsoft.public.excel.worksheet.functions
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Saving for College
I think you want (in A1):
=fv(4.5%/12, 15*12, -375) which translates into depositing 375 per month into a savings account that earns annual interest of 4.5% compounded monthly. As for percent of tuition saved: =A1 / (40000 * 4) formatted as Percentage. PS: When using Excel financial functions like FV, PV and PMT, inflows and outflows should have different signs (positive and negative). Which to use for inflow or outflow is arbitrary; it depends on your point of view (saver v. bank; borrower v. lender). I tend to choose the point of view that results in a positive function result. PPS: For future reference, it is better to keep all related posting in the same (original) thread. I decided to duplicate my response to your other posting (title "FV") because the title and your posting here are clearer to me. This might be the better thread to continue with. ----- original message ----- "Struggling College Student" <Struggling College wrote in message ... I have to make a plan for a monthly payment deposit for the next 15 years. The account pays 4.5% annual interest, compounded monthly. I have to use the FV function to determine the % of college tuition saved. Out of State Annual Tuition=40000 Rate(per month)=4.5%/12 Nper(number of monthly payments)=15*12 Pmt(payment per period)=375 Percentage of Tuition Saved=FV/Tuition for 4 years |
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