faphillips
New Member
- Joined
- Apr 17, 2010
- Messages
- 15
I need to find a formula that will work out how much I need to save each month into a pension where the premium will increase every year in line with National Average Earnings.
For example, let’s say that I need a fund of £100k in 25 years’ time i.e. future value. Let’s say that the premium will increase at a rate of 4% every year and let’s say that average fund growth is 5% p.a. What is the formula to find:
A) The initial monthly payment?
B) The final monthly payment?
What is certain is that the premium in year 25, based on a 4% premium increase each year, will be c 256.33% of the premium at start.
All help very much appreciated
For example, let’s say that I need a fund of £100k in 25 years’ time i.e. future value. Let’s say that the premium will increase at a rate of 4% every year and let’s say that average fund growth is 5% p.a. What is the formula to find:
A) The initial monthly payment?
B) The final monthly payment?
What is certain is that the premium in year 25, based on a 4% premium increase each year, will be c 256.33% of the premium at start.
All help very much appreciated
