if i deposit 1000 each year to a pension saving fund for 41 years with an inflation of 1.40% and an interest of 4.40% (yearly), then how am i able to get the answer in one FV formula. I've already made a table for each year but am unable to get the answer in one formula.
Since the FV formula will only accept one interest rate, the easiest option would be to adjust the interest rate for inflation: (1 + Interest Rate) / (1 + Inflation) - 1
I've done that and used it into my FV formula but i still don't get my the correct answer. I used: -FV(2.95857988%,41,1768.300847,1000,1). I'm very close to the answer (149 926.15) but i think i use a wrong PMT.
Instead of a table, you can use Excel’s FV formula. Just adjust for inflation and enter it all in one line. I found it much quicker and easier for long-term calculations like yours!
Posted by Henna Minkow on
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