Code for calculating

  • Thread starter Thread starter Joe
  • Start date Start date
J

Joe

I would like to have the build-in financial code for
calculating on how much money I will need to invest,
monthly or yearly, when my goal is to have 50,000 in 20
years and the interest rate is at an average at 8%.

Thanks

Joe
 
You might try the Pmt function.

The basic syntax is

Pmt(<Intersest Rate>, <Number of Periods>, <Present Value>, <Future Value>)

There is also an additional optional argument for specifying whether
payments are made at the beginning or end of each period.

For example:

Pmt(0.08, 20, 0, 50000)

returns

-1092.61

indicating you would need to invest 1092.61 yearly to achieve your goal.

Check the help for more information. If you're using Access 2000 or later,
you'll need to view the help from the Microsoft Visual Basic wndow (which
you can display by pressing Alt+F11) to see the help topic for this
function.
 
Dear Joe:

Does it compound, and, if so, how frequently (monthly, annually)?

If it doesn't compound, you would use:

50000 = (1 + 20 * .08) * x

In this case, the answer is $19,230.77

If it compounds monthly:

50000 = x * (1 + .08 / 12) ^ (20 * 12)

In the above formula, 12 is the number of months in a year. This
results in an answer of $10,148.57.

For annual compounding:

50000 = x * (1 + .08) ^ 20

Answer: 10727.41

Compounding makes a lot of difference. Just try to get a mortgage on
simple (non-compounding) interest!

Tom Ellison
Microsoft Access MVP
Ellison Enterprises - Your One Stop IT Experts
 
Sorry, I did this on a single investment, not on recurring "payments".
My mistake!

Tom Ellison
Microsoft Access MVP
Ellison Enterprises - Your One Stop IT Experts
 
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