How to use FV function to find a payment to reach a specific goal

G

Guest

I have a goal to save $50,000.00 in eight years. My annual interest rate is
6.35%. What amount would I need to put away monthly, to obtain this goal? How
would I use FV and Goal Seek command to get this done?
 
N

Niek Otten

Use the PMT function. Look in HELP for details; don't forget to divide the
interest% by 12 if you have monthly payments.

Kind regards,

Niek Otten
 
F

Fred Smith

You don't need Goal Seek. Just use the PMT function:

=pmt(6.35%/12,8*12,0,-50000,1)

The answer is just under $400 per month.
 

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