Savings Assignment

I am to create a spreadsheet to develop a savings schedule. Assume that you will save $120 per month for 35 years at an annual interest rate of 6%. Be sure to show the monthly balance, the interest earned, deposits made and the total amount of interest and deposits made each year and for the entire period...

Any ideas on how to do this???

Connie

assuming you are familiar with excel basics, what is your specific problem. Is interest credited monthly or annually? If monthly, the rate will NOT be 6%/12

$1000 for 1 year at 6% is

1000*(1+.06)
balance

1000*.06
interest

Originally Posted by robert111

assuming you are familiar with excel basics, what is your specific problem. Is interest credited monthly or annually? If monthly, the rate will NOT be 6%/12

$1000 for 1 year at 6% is

1000*(1+.06)
balance

1000*.06
interest

What would the monthly rate be???

Connie

.0486755

this ensures you don't get more than 6% over the whole year


sum invested * (1 + monthly rate) ^ 12


1000*(1 + MR) ^ 12 = 1060 so MR is .0486755