Projected Value of Increasing Deposits
Contents
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.