Projected Value of Increasing Deposits

Example #1

Calculate the account value in 20 years of a monthly deposit of $100 starting today, increasing by 2% per year. Assume a 6% rate of return.

Data Entry

Use the following values for the prompts:


Prompt

Value


Calculation Type

Accumulation


Calculate

Future Value


Current Account Value

0


Interest Rate

6


Number of Years

20


Type of Deposits

Annual Increase by a Percent


Deposits per Year

12


Amount of Each Deposit

$100


Type of Deposits

 


Annual Increase in Deposit

2%


Deposits Made at

Beginning of Period

Result

The Calculated Projected Value shows $53,297.92.

Example #2

What would the account value be if deposits were increased annually by 3%?

Data Entry

Change the Annual Increase in Deposit to 3%.

Result

The Calculated Projected Value shows $57,846.24.