Future Value - Regular Deposits
article we’re going to develop a script to see how to calculate the future
value that regular deposits may produce. This code
calculates the amount
required as a regular deposit to provide a stated future value in a
time period. All deposits are equal.
It’s necessary for you to supply
future value, the nominal interest rate, the number of deposits per
the number of years.
calculation for regular deposits is based on the following formula:
R = amount of regular deposit
T = future value
i = nominal interest rate
N = number of deposits per year
Y = number of years
our simple Matlab function or script to calculate the above formula:
function r =
it, n, y)
We can create another
script to test and run the above
clear; format bank
total value after Y years: ');
nominal interest rate: ');
number of deposits per year: ');
number of years: ');
= calc_future_value(t, it, n, y)
would like to have $1000 at the end of one year in a savings account.
must she deposit each month at 8% interest to achieve it?
our test code and get:
total value after Y years: 1000
nominal interest rate: 8
number of deposits per year: 12
number of years: 1
Value' to home
'Calculate Future Value' to 'Finance Formulas'