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To:
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| 1. Welcome | 5. Deposits
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| 2. General | 6. Withdrawals
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3. Loans
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7. Inflation
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4.
Investments
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8. Acknowledgements |
Investments are an initial lump sum that grows over a period of years at a fixed rate, as in investing a lump sum from an inheritance or winning the lottery. The parameters for Investments are:
Investments
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Initial
$ Amount Invested
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$
Value of Investment at Maturity
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#
times Interest is calculated [compounded] per Year
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Annual
interest [growth] rate in %
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#
Years to Maturity [Total Length of the investment period]
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Example: To calculate the amount that must be invested for 20 years at 5.25% annual interest compounded quarterly to result in a value at maturity of $100,000 ...
1. Click on the (Investments) tab in the top row of tabs in the FinancesOSX window.
2. Click on the (Amount Invested) tab in the second row of tabs.
3. Enter "100000" in the {Value at Maturity} field, "4" in the {Compoundings/Year} field, "5.25" in the {Annual Interest Rate} field, and "20" in the {Number of Years} field. Tabbing is permitted between fields.
4. Click on the [Compute Amount Invested] button. The investment amount of "$ 35,233.63" is then displayed in the {Compute Amount Invested} field. This answer can be copied to the clipboard.
The calculated total Compoundings (compoundings/yr x #Yrs) is limited to a range of 0.01-100,000. If the chosen parameters in the Compoundings/Yr tab result in total compoundings outside this range an error message is displayed.