Future Value: Compound Interest with Regular Deposits [racer8]

26 thg 9, 2020

This isn't no ordinary FV equation, this one takes into account regular deposits. I had to derive this equation myself.
This calculator calculates future value based on the following inputs:
- Present value
- Yearly return
- Yearly deposit
- years

Application: Can be used to determine you're future value of your equity curve.

C = c*m^n + a*m*{(m^(n-1)-1)/(m-1)}

C = Future value
c = present value
m = yearly return multiplier
n = years
a = yearly deposit amount

Enjoy :)

26 thg 9, 2020

Phát hành các Ghi chú

...More info:

This tool is for educational purposes. The sole purpose of this tool is to show the effects regular deposits can have on one's own equity curve over time. I have learned quite a bit myself from this indicator about the effects after testing this indicator and plotting the equity curves with & without regular deposits on desmos.com (an advanced online graphing calculator).

I can conclude what I have learned in the following:
- yearly regular deposits don't have a major impact on the equity curve. (I'm not sure about monthly or bi-weekly deposits.)
- It is probably most optimal to inject regular deposits for the first few years when trading, then stop depositing after that.

27 thg 9, 2020

Phát hành các Ghi chú

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