Returns the future value of a periodic saving.

Category: | Financial |

A savings
account pays a 5 percent nominal annual interest rate, compounded
monthly. For a monthly deposit of $100, the number of payments that
are needed to accumulate at least $12,000, can be expressed as

number=saving(12000,100,.05/12,.);

The value
returned is 97.18 months. The fourth argument is set to missing, which
indicates that the number of payments is to be calculated. The 5 percent
nominal annual rate is converted to a monthly rate of 0.05/12. The
rate is the fractional (not the percentage) interest rate per compounding
period.

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