Example #1
A client currently has $100,000 in their account and is making monthly deposits of $500, increasing by 2.5% per year. They are earning 7% per year. How many years will it take for the account to grow to $1,000,000?
Data Entry
Use the following values for the prompts:
Prompt |
Value |
|
Calculation Type |
Accumulation |
|
Calculate |
Number of Years |
|
Current Account Value |
$100,000 |
|
Interest Rate |
7% |
|
# of Deposits/Yeart |
12 |
|
Amount of Each Deposit |
500 |
|
Type of Deposits |
Annual Increasing by Percent |
|
Annual Increase in Deposit |
2.5 |
|
Deposits Made at |
End of Period |
|
Annual Increase in Deposit |
2.5% |
|
Projected Value |
$1,000,000 |
Result
The Calculated Number of Years shows 24.5409.
Example #2
How many years would it take if they quit making deposits today?
Data Entry
Enter a zero ('0') for Deposit Amount.
Results
The Calculated Number of Years recalculates to 34.0322 years.
