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March 8th, 2019, 12:41 AM   #1
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Formula for investment calculator

Hi, I really need some help in creating a formula for an investment calculator for the table image below. I would be very greatful if you could help.
I would like to work out a formula for a yearly lump sum over 10 years & 9% interest every year, but at year 1 there is a premium which is -total Your help would be much appreciated
Attached Images 83B67CBA-300D-4A79-9ADE-2BF6E5F659A9.jpg (11.1 KB, 4 views) March 8th, 2019, 09:23 AM   #2
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Quote:
 Originally Posted by simplyharoon Hi, I really need some help in creating a formula for an investment calculator for the table image below. I would like to work out a formula for a yearly lump sum over 10 years & 9% interest every year, but at year 1 there is a premium which is -total.
Your attached example is confusing: the annual interest
rate is not constant; as example:
year#4 rate = ~11.86%
year#8 rate = ~9.89%
The average rate for the 10 years is ~10.6%

Your problem itself is also unclear.
Looks like you're asking:
given an annual contribution over a number of years
earning a certain rate, and a premium deducted from
year#1's contribution, calculate the future value.

a = annual contribution
n = number of years
r = annual rate
p = premium deducted
f = future value

Formula to calculate future value:

f = (a - p)*(1 + r)^(n - 1) + a*[(1 + r)^(n - 1)]/r

As example:
a = 1000
n = 5
r = .12
p = 300
f = ?

f = (1000 - 300)*(1.12^4) + 1000*(1.12^4)/.12
f = 5880.79

And it'll look like:
Code:
YEAR TRANSACTION INTEREST  BALANCE
0                                                  .00
1      1000.00
1      -300.00                  .00    700.00
2      1000.00              84.00  1784.00
3      1000.00            214.08  2998.08
4      1000.00            359.77  4357.85
5      1000.00            522.94  5880.79
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