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Savings Goal Payment

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Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Dec 3, 2014, 11:42:15 PM
`P = (i*F)/((1+i)^n-1)`
`(F)"Future Amount"`
`(i)"Annual Interest Rate"`
`(n)"period"`
Tags
Investment Personal Finance Loans Banking Savings Compounding Verified
UUID
e6d3fd1a-da27-11e2-8e97-bc764e04d25f

The Savings Goal Payment equation computes the required monthly payment (P) to reach a savings goal (F) over a number of years (n)  at a fixed annual interest rate (i)./attachments/e6d3fd1a-da27-11e2-8e97-bc764e04d25f/3D Piggy Bank (7960787444_47853ff66f_z).jpg 1

If you want to reach a savings goal of (F) = $25,000.00, on an investment making 10% fixed compounded interest (i) over 5 five years (n), this formula will tell you that you need to invest $322.84 per month.

  1. ^ 3D Piggy Bank: Flickr / Chris Potter https://www.flickr.com/photos/86530412@N02/7960787444/in/photolist-d8t7KW-payu2G-7knitH
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