How to find how much to put aside monthly to reach savings goal

[Learning Excel for finances]

Is there an Excel formula for this? For example, I have about 200 months
until my daughter goes to college. How much do I have to set aside each
month to have $100,000 if my investment compounds at 7% annually?
Any help would be greatly appreciated!

 

[pdberger]

LEfF --

Here's a formula I've found works. It's kind of like figuring out how to
pay off a $100k loan @ 7% interest over 200 months:

A B
1 Goal $100,000
2 Int Rate 7%
3 Months 200
4 Pmt =PMT(B2/12,B3,0,B1)

I tested it, and was about $17 off after 200 months. Not close enough for a
financial guy, but good enough for us real humans.

BTW -- $265.10.

HTH

 

[Learning Excel for finances]

Thank you, thank you, thank you! I KNEW it had to be something simple that I
was missing. Your reply was exactly what I was looking for.

Thanks again -

Steve

 

[Jim Cone]

The free Excel add-in "Calculate Payments" provided the following data.
Download from ... http://www.realezsites.com/bus/primitivesoftware
No registration required.
--
Jim Cone
San Francisco, USA

'-----------------------------
Savings goal: $100,000
Interest rate: 7.00 %
Term: 16 years - 8 months
Deposits per year: 12
Number of deposits: 200
Deposit at start of period.
Deposit: $263.57
Total deposits: $52,713
'---------------------------------

"Learning Excel for finances"
wrote in message
Is there an Excel formula for this? For example, I have about 200 months
until my daughter goes to college. How much do I have to set aside each
month to have $100,000 if my investment compounds at 7% annually?
Any help would be greatly appreciated!