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Saving for a car
Financial - Examples for the financial calculators
Thursday, 04 December 2008 06:33

This is an example for the Save for an Amount Calculator.

Suppose you want to buy a car. You already have $ 10000 but you want to buy a car costing $ 15000. This example computes how many months you need to save for the remaining $ 5000.

Of course it all depends on how much you can save each month and on the interest rate. Suppose that the bank gives you 5%. Unfortunately you can not save money on a regular basis. Only in February you can save $ 500 and in May you can save $ 600. In december you have to use $ 100 of your savings. Furthermore you start saving in October.

The data given above can be entered in the calculator as follows:

Number of months
Initial amount:10Final amount:15
Initial month:10Interest rate (%):5
leave this field empty

The initial month can be added either by entering the month number or by entering the name of the month.

Now add the months February, May and December to the section below the horizontal line by entering their month number and then clicking on the plus (+) sign after the text Add months with given amount. So first enter "2", then click plus, then enter "5", click plus and finally enter "12" and click plus. Remove the month January below the horizontal line by clicking its minus (-) sign.

Then enter the amounts for each line below the horizontal line: 0.5 for February, 0.6 for May and -0.1 for December. Finally click Compute.

The number of computed months is 41. The total saved amount in those months is roughly $ 15500. If you want to add these 41 months to the current date or another date you can use this calendar.

The input data for this example can also be entered as HTML code. Cut and paste the text in the field below to the field in the tab Input from HTML. This HTML code was exported first using the button Save input as HTML.

See also the example Saving and earning your tuition fee.