Deposit Required to Accumulate a Specific Amount
Contents
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. |