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 Post subject: How to calculate interest on a saving accountPosted: Tue Jul 24, 2012 8:50 am

Joined: Tue Jul 24, 2012 8:36 am
Posts: 3
 Hi,I have a saving plan, that work this way:1200€ yearly deposit, that each year got incremented by 3%The median interest rate is 4%How much will I have after 20 years?And how to put the math down on a spreadsheet?For those curious about it, it's a mixed insurance/retirement plan that I subscridbed 7 years ago when working for an insurance company.
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 Post subject: Re: How to calculate interest on a saving accountPosted: Tue Jul 24, 2012 1:14 pm

Joined: Wed Oct 01, 2008 5:43 am
Posts: 8
 Not quite sure I got it exactly right, but I'm getting 48,049.For excel, you need four columns:1) Year (1, 2, 3, 4..... to 20)2) Starting amount (0 in year 1, ending amount from previous year thereafter)3) Deposit (1200 in year 1, 1.03*previous deposit thereafter)4) Ending amount ((starting amount + deposit)*1.04)For the first row, you have year = 1, start = 0, deposit = 1200, end = (0+1200)*1.04 = 1248.Every row after that, year = prev year + 1, start = prev end, deposit = (prev deposit)*1.03, end = (start+deposit)*1.04.With those parameters, you have 48,049 after 20 years.
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 Post subject: Re: How to calculate interest on a saving accountPosted: Thu Aug 02, 2012 6:00 am

Joined: Tue Jul 24, 2012 8:36 am
Posts: 3
 thanks a lot! It's exactly the formula I needed!
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