Compound interest & princ on $5,000 pm @5% for 25 years

[jsgranite]

I am trying to calculate the value of an account that recieves $5,000 per
month, and is being paid 5% interest compounded quarterly or annually over a
period of 25 years.

Can anyone help?

Thank you for your assistance.

J.D. Stewart

 

[JoAnn Paules [MSFT MVP]]

Definitely wrong newsgroup. I'd suggest asking someone at your local bank.

 

[Herb Tyson [MVP]]

Take a look at the financial formulas in Excel.

 

[widman]

do a search for excel templates. I used to have several that would do that
and much more, but lost them somewhere along the way, and haven't really
needed them lately.

 

[Harlan Grove]

Definitely wrong newsgroup. I'd suggest asking someone at your local
bank.

Office includes Excel. Excel includes financual functions that can calculate
this. Why is this the wrong newsgroup other than the unfortunate fact there
are MVPs who can't answer the question but feel the need to chime in anyway?

5% interest compounded quarterly usually means 5% nominal annual compounded
quarterly, in which case the quarterly effective interest rate is 5%/4.

5% interest compounded annually usually means 5% annual effective.

Given 5,000 deposits monthly, with quarterly compounding taking place just
after the 3rd, 6th, 9th etc deposits, the accumulated value after 25 years
would be given in Excel by

FV(5%/4,25*4,-5000*3)

(the minus sign in the 3rd argument is an unfortunate necessity due to
Excel's adoption of sign convention for financial functions). For annual
compounding after the 12th, 24th, etc. deposits,

FV(5%,25,-5000*12)

That said, there *IS* a point to asking application-specific questions in
application-specific newsgroups.

 

[Bob I]

http://www.1728.com/compint.htm