How can I calculate my savings with varying deposits using the interest formula?

  • Thread starter Thread starter Unassuming
  • Start date Start date
  • Tags Tags
    Formula Interest
AI Thread Summary
To calculate savings with varying deposits using the interest formula, start with the formula A=d((1+i)^n-1)/i for uniform deposits. For a scenario where an initial large deposit of $5000 is made, apply the formula separately for this amount and for each subsequent uniform deposit. Each deposit should use the formula with a reduced time period, reflecting the number of compounding periods remaining for that specific deposit. Sum the results of each calculation to find the total savings. This method effectively accounts for both the initial deposit and ongoing contributions over time.
Unassuming
Messages
165
Reaction score
0

Homework Statement



Using the following savings formula, where d is a uniform deposit, i= (interest rate)/(# times compounded per year), n is the total times compounded.

As I understand it, this formula will tell me how much I will have after depositing a certain amount of money per compounding period given an interest rate and time.

How can I take into account the situation where I start off by depositing a large sum like $5000, and then make uniform deposit during every compounding period?

Homework Equations



I am using the savings formula,

A=d(\frac{(1+i)^n-1}{i})

The Attempt at a Solution

 
Physics news on Phys.org
Use that formula one the first amount, the same formula, with the time one month less, on the amount deposited for the second month, the formula with the time two months less for the amount deposited on the third month, etc. and then add them all.
 
Back
Top