Savings plan
With a fund savings plan, a one-off starting capital ("K0") and then regular monthly installments ("r") are invested in a fund. The relationship with target capital, return and term can be established here using the recursive calculation ruleKt =q*Kt-1+r.
Consequently, the following scenarios can be considered for the savings plan:
- What target capital do I get with a starting capital ofK0, a term of n months/years and a monthly installment of r?
- In what amount must the monthly installments be paid in order to obtain a target capital ofKn with a starting capital ofK0 and a term of n months/years?
- How long is the term to obtain a target capital ofKn with a starting capital ofK0 and monthly installments of r?
- How high must the starting capital be in order to obtain a target capital ofKn with monthly installments of r and a term of n?