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help! compound interest!
Old 06-08-2017, 02:53 AM   #1
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help! compound interest!

I could only use an average of 9000 annual addition on moneychimp for a future amount. Was wondering if anyone had a site I could plug in actual numbers every year.?

I have 24000 in an additional pension savings plan that offers 7.5% interest so with an average of 9000 annually contributed I got $323,708.

I have about 15 years left to retirement and I can contribute 10% of my salary after tax. I figuring we will get 2.5% raises every year but possibly more.

1. 8681
2. 8888
3. 9110
4. 9338
5. 9571
6. 9811
7. 10056
8. 10307
9. 10565
10. 10829
11. 11100
12. 11377
13. 11662
14. 11953
15. 12252

Anyone know how much I'll have in 2032 using the actual numbers?!

Thanks!
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Old 06-08-2017, 05:52 AM   #2
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You can easily figure it out in Excel or any spreadsheet software. I'm not sure what calculation you're really asking for, or I'd run the calc for you. If you describe in more detail what you want calculated, it would be easy to do.
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Old 06-08-2017, 05:57 AM   #3
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Originally Posted by Masquernom View Post
You can easily figure it out in Excel or any spreadsheet software. I'm not sure what calculation you're really asking for, or I'd run the calc for you. If you describe in more detail what you want calculated, it would be easy to do.
24000 in "the bank" now 7.5% Apr with the 15 years added.

Compound interest!

Sorry been up 24 hours and I work midnights. Most of my life I'm in a fog
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Old 06-08-2017, 05:59 AM   #4
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I'm also not proficient in Excel..
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Old 06-08-2017, 06:06 AM   #5
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This what you're looking for?

Interest Rate: 7.5%

Year Funds
1 $24,000
2 $25,800
3 $27,735
4 $29,815
5 $32,051
6 $34,455
7 $37,039
8 $39,817
9 $42,803
10 $46,014
11 $49,465
12 $53,175
13 $57,163
14 $61,450
15 $66,059
16 $71,013
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Old 06-08-2017, 06:07 AM   #6
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Year Begin Balance Contributions Interest Earnings Year End Balance
    
$24,000.00 $8,681.00 $- $32,681.00
$32,681.00 $8,888.00 $2,451.08 $44,020.08
$44,020.08 $9,110.00 $3,301.51 $56,431.58
$56,431.58 $9,338.00 $4,232.37 $70,001.95
$70,001.95 $9,571.00 $5,250.15 $84,823.10
$84,823.10 $9,811.00 $6,361.73 $100,995.83
$100,995.83 $10,056.00 $7,574.69 $118,626.51
$118,626.51 $10,307.00 $8,896.99 $137,830.50
$137,830.50 $10,565.00 $10,337.29 $158,732.79
$158,732.79 $10,829.00 $11,904.96 $181,466.75
$181,466.75 $11,100.00 $13,610.01 $206,176.76
$206,176.76 $11,377.00 $15,463.26 $233,017.01
$233,017.01 $11,662.00 $17,476.28 $262,155.29
$262,155.29 $11,953.00 $19,661.65 $293,769.94
$293,769.94 $12,252.00 $22,032.75 $328,054.68
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Old 06-08-2017, 06:14 AM   #7
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Quote:
Originally Posted by exnavynuke View Post
Year Begin Balance Contributions Interest Earnings Year End Balance
    
$24,000.00 $8,681.00 $- $32,681.00
$32,681.00 $8,888.00 $2,451.08 $44,020.08
$44,020.08 $9,110.00 $3,301.51 $56,431.58
$56,431.58 $9,338.00 $4,232.37 $70,001.95
$70,001.95 $9,571.00 $5,250.15 $84,823.10
$84,823.10 $9,811.00 $6,361.73 $100,995.83
$100,995.83 $10,056.00 $7,574.69 $118,626.51
$118,626.51 $10,307.00 $8,896.99 $137,830.50
$137,830.50 $10,565.00 $10,337.29 $158,732.79
$158,732.79 $10,829.00 $11,904.96 $181,466.75
$181,466.75 $11,100.00 $13,610.01 $206,176.76
$206,176.76 $11,377.00 $15,463.26 $233,017.01
$233,017.01 $11,662.00 $17,476.28 $262,155.29
$262,155.29 $11,953.00 $19,661.65 $293,769.94
$293,769.94 $12,252.00 $22,032.75 $328,054.68
Exactly this!

Although it would be 3 more years of interest but no more added cash because I'm retiring at 47 but I don't have to take it until 50. So should be around 400k then. Thanks!
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Old 06-08-2017, 06:15 AM   #8
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Originally Posted by Masquernom View Post
This what you're looking for?

Interest Rate: 7.5%

Year Funds
1 $24,000
2 $25,800
3 $27,735
4 $29,815
5 $32,051
6 $34,455
7 $37,039
8 $39,817
9 $42,803
10 $46,014
11 $49,465
12 $53,175
13 $57,163
14 $61,450
15 $66,059
16 $71,013
Sorry for the disconnect in communication.
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Old 06-08-2017, 06:21 AM   #9
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Early morning for me. No caffeine yet. Looks like Exnavy understood what you wanted.
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Old 06-08-2017, 08:13 AM   #10
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You can use this formula for the present value of a geometric series:

PV = [P / (r-g)]*[1 - [(1+g) / (1+r)]^N]

P = first payment = 8681
r = discount rate = 0.075
g = growth rate of payment = 0.025
N = number of payments = 15

The amount you will have in N years is the future value:

FV = PV*(1+r)^N
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Old 06-08-2017, 02:46 PM   #11
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Originally Posted by FIRE'd@51 View Post
You can use this formula for the present value of a geometric series:

PV = [P / (r-g)]*[1 - [(1+g) / (1+r)]^N]

P = first payment = 8681
r = discount rate = 0.075
g = growth rate of payment = 0.025
N = number of payments = 15

The amount you will have in N years is the future value:

FV = PV*(1+r)^N
Thanks!
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Old 06-22-2017, 09:28 PM   #12
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Quote:
Originally Posted by Illinois guy View Post
Sorry been up 24 hours and I work midnights. Most of my life I'm in a fog
Some would say the same thing about me ... although I get plenty of sleep and don't work at all!
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Old 06-26-2017, 06:04 AM   #13
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Lol.nice
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