Future value plus annual contributions

Thread view:

Enable EMail Alerts

Start New Thread

Thread rating:

Ken - 19 Mar 2006 02:10 GMT

I have the formula that will calculate the future value of an investment
using variables for the investment amount, interest rate and number of years
(=A1*(1+C1)^B1). In addition I want to add another variable to the formula
that adds an annual "contribution" to the investment and includes the annual
contribution in the compounding formula. Can someone help?

Thanks.

Reply to this Message

bpeltzer - 19 Mar 2006 03:57 GMT

Check the FV (future value) function. What you've got so far is the FV with
a 0 payment, and what you're trying to do is the FV with both a payment and a
PV.

> I have the formula that will calculate the future value of an investment
> using variables for the investment amount, interest rate and number of years
[quoted text clipped - 3 lines]
>
> Thanks.

Reply to this Message

Ken - 19 Mar 2006 05:28 GMT

Thanks - that seems to be working!

> Check the FV (future value) function. What you've got so far is the FV with
> a 0 payment, and what you're trying to do is the FV with both a payment and a
[quoted text clipped - 7 lines]
> >
> > Thanks.

Reply to this Message

vandenberg p - 19 Mar 2006 07:26 GMT

Hello:

An alternative:

If you wanted to stick with a formula similar to the one you are already
using this will work:

Future Value = (Annual amount)*((1+i)^periods)/i

Just add the amount you got for the lump sum to results of the above.

Pieter Vandenberg

: Check the FV (future value) function. What you've got so far is the FV with
: a 0 payment, and what you're trying to do is the FV with both a payment and a
: PV.

:> I have the formula that will calculate the future value of an investment
:> using variables for the investment amount, interest rate and number of years
[quoted text clipped - 3 lines]
:>
:> Thanks.

Reply to this Message