Financial: Savings plan calculation

05162018, 09:11 AM
Post: #1




Financial: Savings plan calculation
Dear all,
I struggle on an approach to solve the following financial calulation: Given is a saveings plan with a fixed time t[yr], interest rate, static monthly investment and  here comes my issue  an annual bonus which depends on the annual invested money (and so is constant during the whole contract). I'm now looking on a solution how to calculate the needed interestrate to achive the desired final capital at the end of the contract. Without this "annual bonus" it is a nobrainer, but with I'm kind of stuck. Any hints for me? Regards Carsten. 

05162018, 08:02 PM
(This post was last modified: 05172018 04:36 AM by cortopar.)
Post: #2




RE: Financial: Savings plan calculation
Pseudo Pascalish code for the brute force method...
Code:
Now this is going to return the interest at which balance exceeds goal. To get it exact would need additional processing at finer precision. I’m sure there’s a formulaic way to solve this easier, but it exceeds my math abilities. Edited to Primecompliant HPPPL. Tested on my Prime. It is slow as you’d expect. It could be sped up by providing or calculating a starting guess and larger increment before refining. 

05212018, 04:49 PM
Post: #3




RE: Financial: Savings plan calculation
Sounds tailormade for the spreadsheet.


05232018, 08:28 AM
Post: #4




RE: Financial: Savings plan calculation
Well,
an formularic approach would be exactely what I would be looking for. I can't believe that this can only be solved by an iterative solution .... 

05232018, 02:06 PM
(This post was last modified: 05232018 02:07 PM by KeithB.)
Post: #5




RE: Financial: Savings plan calculation
Just use a separate calculation for the bonus compounded annually.
I.e. (compounded value of monthly payments) + (compounded value of bonus) The reason to suggest the spreadsheet was for generality. 

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