this is the parameters i want to use:
Initial investment (a)
deposit per f1 (d) for example 1000 per month
frequency of deposit per year (f1), f1=12 if it is per month
frequency of compound (f2)
interest or growth per year (g)
I would like to find the formula where you can answer the question:
you start with a one time initial investment (i) of 5000$ and then you add 1000$ (d) per month (f) for 8 years (n).
the growth or interest is 7% (g) per year (f2) and the inflation 3%.
the calculations are similar to this one, but also includes initial investment.
interest - Wolfram|Alpha
I've come up with an easier version, not including initial investment or f2 (it only works for annual compounding of g).
It looks like this:
this one is a bit simplified though. I dont know how to do it. ive been looking around for instance here:
Time value of money - Wikipedia, the free encyclopedia
but have not yet found the correct formula. Please help