How to use FV function to find a payment to reach a specific goal

#1 October 8th, 2005, 08:49 PM

I have a goal to save $50,000.00 in eight years. My annual interest rate is
6.35%. What amount would I need to put away monthly, to obtain this goal? How
would I use FV and Goal Seek command to get this done?

#2 October 8th, 2005, 09:36 PM

Use the PMT function. Look in HELP for details; don't forget to divide the
interest% by 12 if you have monthly payments.

Kind regards,

Niek Otten

"Duke20" wrote in message
...
I have a goal to save $50,000.00 in eight years. My annual interest rate is
6.35%. What amount would I need to put away monthly, to obtain this goal?
How
would I use FV and Goal Seek command to get this done?

#3 October 9th, 2005, 12:43 AM

You don't need Goal Seek. Just use the PMT function:

=pmt(6.35%/12,8*12,0,-50000,1)

The answer is just under $400 per month.

--
Regards,
Fred

"Duke20" wrote in message
...
I have a goal to save $50,000.00 in eight years. My annual interest rate is
6.35%. What amount would I need to put away monthly, to obtain this goal? How
would I use FV and Goal Seek command to get this done?

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