Interest calculations MS Excel



A user wishes to save a certain amount of money ($2500000) for his future needs. He wishes to know how much money he should save every month in an annuity that gives a certain annual interest rate (7.25%). He would also like to know the interest earned on his deposits for 30 years.
First we calculate the present value of each deposit using the PMT function because we know the future value ($2500000), the annual interest rate (7.25%) and the total period of deposits (30 years). Once the…

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