SAVINGS Function

Returns the balance of a periodic savings by using variable interest rates.

Category:

Financial

Syntax

SAVINGS(base-date, initial-deposit-date, deposit-amount, deposit-number,
deposit-interval, compounding-interval, date-1, rate-2 <,date-2, rate-2,...>)

Required Arguments

base-date

is a SAS date. The value that is returned is the balance of the savings at base-date.

initial-deposit-date

is a SAS date. initial-deposit-date is the date of the first deposit. Subsequent deposits are at the beginning of subsequent deposit intervals.

deposit-amount

is numeric. All deposits are assumed constant. deposit-amount is the value of each deposit.

deposit-number

is a positive integer. deposit-number is the number of deposits.

deposit-interval

is a SAS interval. deposit-interval is the frequency at which deposits are made.

compounding-interval

is a SAS interval. compounding-interval is the compounding interval.

date

is a SAS date. Each date is paired with a rate. date is the time that rate takes effect.

rate

is a numeric percentage. Each rate is paired with a date. rate is the interest rate that starts on date.

Details

The following details apply to the SAVINGS function:

The values for rates must be between –99 and 120.
deposit-interval cannot be 'CONTINUOUS'.
The list of date-rate pairs does not need to be in chronological order.
When multiple rate changes occur on a single date, the SAVINGS function applies only the final rate that is listed for that date.
Simple interest is applied for partial periods.
There must be a valid date-rate pair whose date is at or prior to both the initial-deposit-date and the base-date.

Example

If you deposit $300 monthly for two years into an account that compounds quarterly at an annual rate of 4%, the balance of the account after five years can be expressed as follows:
```
amount_base1 = SAVINGS("01jan2005"d, "01jan2000"d, 300, 24,
                                    "MONTH", "QUARTER", "01jan2000"d, 4.00);
```

If the interest rate increases by a quarter-point each year, then the balance of the account could be expressed as follows:

amount_base2 = SAVINGS("01jan2005"d, "01jan2000"d, 300, 24,
                                    "MONTH", "QUARTER", "01jan2000"d, 4.00,
                                    "01jan2001"d, 4.25, "01jan2002"d, 4.50,
                                    "01jan2003"d, 4.75, "01jan2004"d, 5.00);

To determine the balance after one year of deposits, the following statement sets amount_base3 to the desired balance:
```
amount_base3 = SAVINGS("01jan2001"d, "01jan2000"d, 300, 24,
                                    "MONTH", "QUARTER", "01jan2000"d, 4); 
```

The SAVINGS function ignores deposits after the base date, so the deposits after the reference date do not affect the value that is returned.