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A
Alan Beban
J
Jim May
The FV() accumulates and gives you the future value of
say depositing $300.00 per month into an acct earning 3%
over a 48 month period and yields
$15,279.36
=-FV(C5/12,C6,C4)
I'm interested in Starting with $20,000 in an acct
earning 3% and withdrawing $400 per month for 20 months;
How much would remain in the Acct?
say depositing $300.00 per month into an acct earning 3%
over a 48 month period and yields
$15,279.36
=-FV(C5/12,C6,C4)
I'm interested in Starting with $20,000 in an acct
earning 3% and withdrawing $400 per month for 20 months;
How much would remain in the Acct?
B
Bernard Liengme
Hi Jim,
Your question is about the value of an account at some time in the future.
So FV is the function we need.
=FV(rate, nper, pmt, [pv],[code for end or beginning of month])
Let's forget the last parameter - assume payment is paid (withdrawn) at end
of month
=FV(3%/12, 20, 400, -20000) = 12,831.23
Looks about right: started with 20,000, took out 8000 (20 * 400), leaving
12,000 but there was a minor interest accumulation.
We have to get the cash flow correct. I like to use: Money To me is
positive and from me is negative
So I put the 20000 into the annuity, I receive the 400 monthly.
Best wishes
Your question is about the value of an account at some time in the future.
So FV is the function we need.
=FV(rate, nper, pmt, [pv],[code for end or beginning of month])
Let's forget the last parameter - assume payment is paid (withdrawn) at end
of month
=FV(3%/12, 20, 400, -20000) = 12,831.23
Looks about right: started with 20,000, took out 8000 (20 * 400), leaving
12,000 but there was a minor interest accumulation.
We have to get the cash flow correct. I like to use: Money To me is
positive and from me is negative
So I put the 20000 into the annuity, I receive the 400 monthly.
Best wishes
J
JMay
Berbard:
Appreciate the pointers; turns out it is the same (not opposite) Function
(The FV())
only with an added argument being employed (at the 4th position)
I got it working..
Thanks again for your patience and help!!
Jim May
Appreciate the pointers; turns out it is the same (not opposite) Function
(The FV())
only with an added argument being employed (at the 4th position)
I got it working..
Thanks again for your patience and help!!
Jim May
Bernard Liengme said:Hi Jim,
Your question is about the value of an account at some time in the future.
So FV is the function we need.
=FV(rate, nper, pmt, [pv],[code for end or beginning of month])
Let's forget the last parameter - assume payment is paid (withdrawn) at end
of month
=FV(3%/12, 20, 400, -20000) = 12,831.23
Looks about right: started with 20,000, took out 8000 (20 * 400), leaving
12,000 but there was a minor interest accumulation.
We have to get the cash flow correct. I like to use: Money To me is
positive and from me is negative
So I put the 20000 into the annuity, I receive the 400 monthly.
Best wishes
--
Bernard Liengme
www.stfx.ca/people/bliengme
remove CAPS in e-mail address
Jim May said:The FV() accumulates and gives you the future value of
say depositing $300.00 per month into an acct earning 3%
over a 48 month period and yields
$15,279.36
=-FV(C5/12,C6,C4)
I'm interested in Starting with $20,000 in an acct
earning 3% and withdrawing $400 per month for 20 months;
How much would remain in the Acct?