One-off investment
In the case of a one-off investment, the initial capital ("K0"), target capital ("Kn"), return ("p") and term ("n") are related to each other using the recursive calculation formulaKt =q*Kt-1 . Where t is a point in time between 0 and n, and q results from 1+p. By breaking down this formula and incorporating the output premium, each variable can be calculated as a function of the other values, i.e. the following scenarios can be calculated:
- What target capital will I receive for a particular fund with a starting capital ofK0 and a term of n months/years?
- What starting capital do I need to invest in order to achieve a target capital ofKn for a specific fund with a term of n months/years?
- How long is the term to obtain a target capital ofKn for a specific fund with a starting capital ofK0 ?
- How high would the return on a particular fund actually have to be in the future in order to achieve the target capitalKn with a starting capital ofK0 and a term of n months/years?