Deposit Required to Accumulate a Specific Amount

Example

What is the monthly savings required to accumulate $20,000 in 15 years at 6% interest?

Data Entry

Use the following values for the prompts:


Prompt

Value


Calculation Type

Accumulation


Calculate

Deposit Amount


Current Account Value

0


Interest Rate

6%


Number of Years

15


Deposits per Year

12


Type of Deposits

Level Deposits


Deposits Made at

End of Period


Future Value

$20,000

Result

The Calculated Deposit Amount shows $69.71.

Note:After the deposit is calculated, TRAK will recalculate the Projected Value for the scenario. A Projected Value of $20,000.68. will be shown (different than the initial desired value of $20,000). This is because the deposit produces a greater balance than the desired future balance. If a Deposit Amount of $69.70 was used (one penny less than the calculated value), the Projected Value would be $19,997.75. TRAK uses the deposit with the closest value.