
Section 4: Programming 267


Label B: Given $2000 initially plus $185 per month invested at 1% per month. What is the monthly
total savings? This also is a compound growth schedule with a growth (interest) factor of 1.01
but with an addition of $185 monthly to the amount being compounded.


Label C: This is simply the difference between required downpayment and savings (label A
minus label B).


Label D: What is the number of months required for the savings to overtake the required downpayment?


Label E: What is the difference between savings and required downpayment at a specified month—say
8 months hence?


Figure 46 shows the monthly answers for labels A, B, and C for the first 12 months.


Month

Label A
Required
Downpayment
(4000)

Label B
Savings
(2000)

Label C
Difference



1




2




3




4




5




6




7




8




9




10




11




12





4020.00




4040.10




4060.30




4080.60




4101.01




4121.51




4142.12




4162.83




4183.64 



4204.56




4225.58




4246.71





2205.00




2412.05




2621.17




2832.38




3045.71




3261.16




3478.77




3698.56




3920.55




4144.75




4371.20




4599.91




–

1815.00



–

1628.05



–

1439.13



–

1248.22



–

1055.30



–

860.35



–

663.34



–

464.27



–

263.09



–

59.81




145.52




353.20






Note that the calculation assumes the monthly amount to be deposited at the end of
the month; this is an ordinary annuity in business parlance. The Personal
Investment Program in the Standard Pac, on the other hand, assumes the monthly
amount to be deposited at the beginning of the month; this is an annuity due
in business parlance.





Figure 46. Calculation Results
