Very Interesting...Math Whizzes Only..

[Tommy_Dolitte]

How do you take the result from an MS Excel calculation and have it automatically populate itself into the appropriate cell in a worksheet embedded on a webpage, and THEN send the results back into your worksheet?

I've completed my monthly budget and want to see how my savings rate (when plugged into http://www.4degreez.com/misc/million.mv), will impact how long it will take me to get to $1MM.

I don't know to use the compound interest or FV formulas, so if that's easier, please advise.

Regards,
TD

 

[ats5g]

TD,

FV is excel is pretty easy to use this way:

RATE is the interest rate per period (like per year) your investments will earn

NPER is the number of periods (like per year) the interest will compound.

PMT is the payment you'll make per period. For accumulating, enter a negative number.

PV is the amount of money you have now. Enter a negative number.

TYPE is when you'll be making the contribution. Enter "1" for contributions at the beginning of each period, or enter "0" [zero] for contributions at the end of each period.

For example, say my assumed rate of return is 5% per year, for 30 years, I'll be contributing $2000/year (enter "-2000"), I've got no money saved already, and I'll be contributing at the end of each year. The FV is

=FV(5%,30,-2000,0,0)

or $132,877.70.

If you want to contribute monthly, just change everything to be denominated in months. So, I'll be contributing $166.666667 per month, for 360 months, at a rate of return of 0.4074% per month, and again at the end of each month, with no starting money.

To get the monthly return, just take:

(1+ annual rate of return) = (1 + monthly rate of return)^(12)

and solve for "monthly rate of return" to get:

(1+ annual rate of return)^(1/12)-1 = monthly rate of return

It's also really, really easy to place the inputs in separate cells, and then just reference the cells in the FV function, which is placed in another cell. Makes it a whole lot easier when you change inputs to see the affect on the FV.

- Alec

 

[MeMyselfAndI]

ats5G said:
[blue]For example, say my assumed rate of return is 5% per year, for 30 years, I'll be contributing $2000/year (enter "-2000"), I've got no money saved already, and I'll be contributing at the end of each year. The FV is

=FV(5%,30,-2000,0,0)

or $132,877.70.[/blue]

Likewise, another example may be helpful.
For example 2, say my assumed rate of return is 6% per year, for 35 years, I'll be contributing $3,000/year (enter "-3000"), I've got $10,000 saved already, and I'll be contributing at the end of each year. The FV is

=FV(6%,35,-3000,-10000,0)

or $411,165.21