I want to be able to calculate my projected return on investment in excel over twenty years. I.E. Start with 300K with an assummed 13% return compounded annually for 20 years, and I would like to see what the value is after each year, how is this done?
2007-02-26 03:56:45 · 4 answers · asked by mitchent86 4 in Business & Finance ➔ Investing
The easiest way I would do it is to put the initial investment in cell A1 and the annual rate (13%) in B1 and then multiply A1 by 1+B1 to get your ending balance in C1.
Then, I would link A2 to C1. I would copy the percentage rate down 20 cells in the same column and copy the formula in C1 down the column 20 cells as well.
The answer would be $3,456,926.33 with no additions and 13% compounded annually.
I hope this helps. If not, let me know and I can send you and example.
Update...muncie birder is right 13% is tough especially in today's market. 8-10% is a bit more realistic if you are estimating for yourself. Even then to get that rate you have to be willing to take calculated risks in which you might actually lose money if the investment didn't pan out.
2007-02-26 04:37:20 · answer #1 · answered by R Worth 4 · 2⤊ 0⤋
R Worth gave you an excellent answer, but he should have mentioned that 13% is just a tad on the very aggressive side. You will with 95% probability not be able to maintain 13% over 20 years. A more probable rate would be between 8% and 10% depending on how good an investor you manage to become during the next 20 years.
2007-02-26 13:46:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Use =FV(0.13,n,0,-300000)
substitute n with the year you want eg 1,2,3 etc
Learning Excel financial function from its built-in help is valuable.
2007-02-27 01:41:17 · answer #3 · answered by unnga 6 · 0⤊ 1⤋
thats hard to explain u here.. message me at herochenna@yahoo.com , i will show u how to do that.
that would be easy
2007-02-26 12:39:09 · answer #4 · answered by Anonymous · 0⤊ 1⤋