Excel Calculation Problem Formula etc

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Hi everyone,
Hope you are well. Quite a novice when it comes to Excel.
Was I was hoping to do was this:

I always wanted to put aside $1 a day for my nephew so at 18 years of
age they could purchase a vehicle.
The idea was that with compound interest, that amount over 18 years
would grow significantly.
Like most things, where good intentions exist, one never gets around
to doing anything. (sidetracked, lazy, all the other excuses)

Well, a couple of years ago when I lost a parent and the grandparent
of this nephew, I thought, ok now I’d like to present them with a car
on their 18th on behalf of their grandparent they were close to.

I seriously digress. The point is this nephew is now 12+ and I have
some serious catching up to do if I wish to fulfil this intention.

So back to Excel, 18 years, $1 per day, compound interest included,
backdated to say 1996.

Any assistance in where to begin with all this would be greatly,
greatly appreciated
Kind Regards
Thanks in advance
 
Don't go backward, go forward and make sure you make an assumption what the
car will cost when he gets to be 18. You only have 6 years. below I showed
my results for 72 months (12 to 18 years old).

fFrst put month number in A6 starting at 0 and down the column.

Enter in the following cells

A B
1 Start Amount 10000
2 Add Per Month 30
3 Interest Rate 0.05

Put "Month" in A5
C6 = 10000
B7 = C6 (need the formula)
C7 is formula =B7*(1 + ($B$3/360))^30+$B$2

A B C
Month
0 10000
1 10000 10071.75069
2 10071.75069 10143.80094
3 10143.80094 10216.15201
70 15723.87448 15819.52274
71 15819.52274 15915.57034
72 15915.57034 16012.01894
 
The point is this nephew is now 12+ and I have
some serious catching up to do if I wish to fulfil
this intention.

So back to Excel, 18 years, $1 per day, compound
interest included, backdated to say 1996.
Click to expand...

Suppose you presume that the average interest rate is 2% compounded daily.
Then if you had started saving when your nephew was born, after 18 years,
you would have:

=fv(2%/365, 18*365, -1)

Suppose that formula is in A1, and you want to determine how much you need
to save daily for the next 6 years, since your nephew is 12, in order to
catch up. The would be:

=pmt(2%/365, 6*365, 0, -A1)

That should give you the basics. The devil's in the details. Is the
compounding frequency daily? Can you assume an average interest rate of 2%
over that period of time? (Certainly not today :-<.)



----- original message -----

Hi everyone,
Hope you are well. Quite a novice when it comes to Excel.
Was I was hoping to do was this:

I always wanted to put aside $1 a day for my nephew so at 18 years of
age they could purchase a vehicle.
The idea was that with compound interest, that amount over 18 years
would grow significantly.
Like most things, where good intentions exist, one never gets around
to doing anything. (sidetracked, lazy, all the other excuses)

Well, a couple of years ago when I lost a parent and the grandparent
of this nephew, I thought, ok now I’d like to present them with a car
on their 18th on behalf of their grandparent they were close to.

I seriously digress. The point is this nephew is now 12+ and I have
some serious catching up to do if I wish to fulfil this intention.

So back to Excel, 18 years, $1 per day, compound interest included,
backdated to say 1996.

Any assistance in where to begin with all this would be greatly,
greatly appreciated
Kind Regards
Thanks in advance
 
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