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7/30/2019 Value of Money Calculator
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THE LOGIC OF MONEY
ANNUAL INTEREST RATE = i 4.00%
COMPOUNDING N PERIODS / YEAR = m 4
EFFECTIVE INTEREST RATE / PERIOD = i / 1.00%
EFFECTIVE ANNUAL RATE (T.A.E. in Spain) 4.06%
EFFECTIVE ANNUAL RATE = E.A.R. 4.00%
ANNUAL INTEREST RATE 3.94%
one dollar compounded m times per year at rate i 1.040604
equivalent amount using the effective annual rate 1.040604
ANNUITY 25,000
ANNUAL INTEREST RATE 6.00%
PRESENT VALUE 139,559.54
FUTURE VALUE 209,845.94
PERIODS IN YEARS (using future value) 7
PERIODS IN YEARS (using present value) 7
ANNUITY CALCULATOR (end of period cash flows)
EFFECTIVE ANNUAL RATE (E.A.R.) CALCULA
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input ANNUITY
input PERIODS
input ANNUAL INTEREST RATE
output PRESENT VALUE
FUTURE VALUE
input PERPETUITY - PR. VALUE
output
output
output
input PRESENT VALUE
input FUTURE VALUE
input PERIODS
input ANNUAL INTEREST RATE
output PRESENT VALUE
output FUTURE VALUE
ANNUITY CALCULATOOR
PRESENT, FUTURE VALUE CAL
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3,000 input PERIODS
20 input ANNUAL INTEREST RATE
1.00% input PRESENT VALUE
54,136.66 output FUTURE VALUE
66,057.01 output PERPETUITY - PR. VALUE
300,000.00 output ANNUITY (from present value)
ANNUITY (from future value)
ANNUITY (from perpetuity)
80,000.00 input
276,704.11 input
20 input
6.00% input
86,277.65 output
256,570.84 output
R (end of period cash flows) ANNUITY CALCULATOR (en
ULATOR (end of period cash flows)
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30 input
0.00% input
180,000.00 input
180,000.00 input
1,000.00 input
6,000 output
6,000 output
0 output
d of period cash flows)
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THE LOGIC OF MONEY VIEW THIS SHEET AT 80%
money Initial Amount Invested 30,000 USDinputs
Annual Rate of Return (%) 10%
Number of Years Invested 20
outputs Final Amount Received 201,825 USD
35% Net of Taxes (35%) 131,186 USDIncome Tax Rate
Explanations
and Suggestions
for approaching
Retirement Money
Source of Table: Historical Annual Returns For The S&P 500 Index.
X
Back to Top
30,000 33,000 36,300 39,930 43,92348,315
0
50,000
100,000
150,000
200,000
250,000
1 2 3 4 5 6
$
InvestmentValue
Growth of I
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website link to table in september 2012: http://www.istockanalyst.com/article/
30,000 033,000 1
36,300 239,930 3
INPUT TABLE FOR GRAPH 43,923 4PLEASE DO NOT CHANGE 48,315 5
53,147 658,462 764,308 8
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70,738 977,812 1085,594 1194,153 12
103,568 13113,925 14
125,317 15137,849 16151,634 17166,798 18183,477 19201,825 20222,007 21244,208 22
268,629 23295,492 24325,041 25357,545 26393,300 27432,630 28
475,893 29523,482 30575,830 31633,413 32696,755 33766,430 34843,073 35927,380 36
1,020,118 371,122,130 381,234,343 391,357,778 401,493,555 411,642,911 42
1,807,202 431,987,922 442,186,715 452,405,386 462,645,925 472,910,517 483,201,569 493,521,726 50
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TO GET THE OVERALL, ONE AT A GLANCE VIEW.
You can change the amount invested, the annual rate of return, and the years invested. The am
The amount invested initially is also called the Present Value of your money, how much your mo
The rate at which your money grows. Choose 2%, 5% for Bond Yields, 5%, 10% or so, for stocks o
The rate is a percentage, it is the part of your initial investment that accumulates during e
On Year 2, the new amount invested, $33.000, is the initial amount invested $30.000 plus
The final amount after 20 years is also called a Future Value, it is defined like this: Final Amoun
Writing this same formula with different names, we get the formula found in books: Future Value
X Youd want to take into account these two col
and look at the row titled 2007, the one that h
53,147 58,462 64,30870,738 77,812
85,594 94,153103,568
7 8 9 10 11 12 13 14
Years
nitial Amount Invested - over 20 years at 10% annual compounded interest
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Based on columns 3 and 7Returns average 10% or s10.36% annual return on a
COLUMN 3
iewarticle/articleid/2803347
7/30/2019 Value of Money Calculator
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7/30/2019 Value of Money Calculator
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ount invested is also known as capital, your initial wealth, an asset, it can generate mo
ey is worth today. Press To
r stock indices over 20 years, assumes reinvestment at this rate. Press button to see th
ach period, each year during which your money is invested. raised to
interest, $3.000, $30.000*10% (10% is the Annual Rate of Return). of the Nu
Received = (Initial Amount Invested) * (1+Annual Rate of Return)^(Numb
= FV = Present Value (PV) * (1+r)^(n) in this spr
as in 10%
not as the
umns, a twenty year average of annual returns, and an average annual return since 19
s the most recent information on average annual returns of the S&P 500.
113,925 125,317 137,849
151,634166,798
183,477
201,825
15 16 17 18 19 20 21
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, of the row titled 2007, the last year of information for annual returns of the S&P 500:, on average, annually, when you look at a ten year recent period, 2004, 2005, 2006, a
verage, and over an average period of 20 years, the S&P 500 returns 11.81% annually.
COLUMN 7
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7/30/2019 Value of Money Calculator
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e money if well invested.
S&P index return table.
e S&P index return table.
the power
mber of Years invested
r of Years Invested)
adsheet, input in %,
annual rate of return,
equivalent, 0.1
8, to 2007,
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nd 2007..
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THE MONEY TABLET
money Initial Amount Invested 80,000 USDinputs
Annual Rate of Return (%) 7%
Number of Years Invested 20
outputs Final Amount Received 309,575 USD
35% Net of Taxes (35%) 201,224 USDIncome Tax Rate
Explanations
and Suggestions
for approaching
Retirement Money
Source of Table: Historical Annual Returns For The S&P 500 Index.
X
Back to Top
80,000 85,600 91,592 98,003 104,864112,204
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
1 2 3 4 5 6
$
InvestmentValue
Growth of I
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website link to table in september 2012: http://www.istockanalyst.com/article/
80,000 085,600 1
91,592 298,003 3
INPUT TABLE FOR GRAPH 104,864 4PLEASE DO NOT CHANGE 112,204 5
120,058 6128,463 7137,455 8
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147,077 9157,372 10168,388 11180,175 12192,788 13206,283 14
220,723 15236,173 16252,705 17270,395 18289,322 19309,575 20331,245 21354,432 22
379,242 23405,789 24434,195 25464,588 26497,109 27531,907 28
569,141 29608,980 30651,609 31697,222 32746,027 33798,249 34854,127 35913,915 36
977,889 371,046,342 381,119,586 391,197,957 401,281,814 411,371,541 42
1,467,548 431,570,277 441,680,196 451,797,810 461,923,657 472,058,313 482,202,394 492,356,562 50
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You can change the amount invested, the annual rate of return, and the years invested. The am
The amount invested initially is also called the Present Value of your money, how much your mo
The rate at which your money grows. Choose 2%, 5% for Bond Yields, 5%, 10% or so, for stocks o
The rate is a percentage, it is the part of your initial investment that accumulates during e
On Year 2, the new amount invested, $33.000, is the initial amount invested $30.000 plus
The final amount after 20 years is also called a Future Value, it is defined like this: Final Amoun
Writing this same formula with different names, we get the formula found in books: Future Value
X Youd want to take into account these two col
and look at the row titled 2007, the one that h
120,058 128,463 137,455147,077 157,372 168,388 180,175 192,788
7 8 9 10 11 12 13 14
Years
nitial Amount Invested - over 20 years at 10% annual compounded interest
7/30/2019 Value of Money Calculator
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Based on columns 3 and 7Returns average 10% or s10.36% annual return on a
COLUMN 3
iewarticle/articleid/2803347
7/30/2019 Value of Money Calculator
21/26
7/30/2019 Value of Money Calculator
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ount invested is also known as capital, your initial wealth, an asset, it can generate mo
ey is worth today. Press To
r stock indices over 20 years, assumes reinvestment at this rate. Press button to see th
ach period, each year during which your money is invested. raised to
interest, $3.000, $30.000*10% (10% is the Annual Rate of Return). of the Nu
Received = (Initial Amount Invested) * (1+Annual Rate of Return)^(Numb
= FV = Present Value (PV) * (1+r)^(n) inpu
ann
it is
umns, a twenty year average of annual returns, and an average annual return since 19
s the most recent information on average annual returns of the S&P 500.
206,283 220,723236,173 252,705
270,395 289,322
309,575
15 16 17 18 19 20 21
7/30/2019 Value of Money Calculator
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, of the row titled 2007, the last year of information for annual returns of the S&P 500:, on average, annually, when you look at a ten year recent period, 2004, 2005, 2006, a
verage, and over an average period of 20 years, the S&P 500 returns 11.81% annually.
COLUMN 7
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7/30/2019 Value of Money Calculator
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e money if well invested.
S&P index return table.
e S&P index return table.
the power
mber of Years invested
r of Years Invested)
t in %, as in 10%
al rate of return,
equivalent to 0.1
8, to 2007,
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nd 2007..