Investment Calculator

Category:Investing

Investing money is for most of us something that only the rich do, that only those with degrees in business schools or economy are able to do, it is something that you need to have information unavailable to the masses for. Luckily, these prejudices cannot be further from the truth. In reality, anyone can learn how to invest and where to invest, whether they have a college degree or not. Thanks to the internet – but also available in libraries and others – we can now find information about anything we want and we can do some research and learn more about what investing really is. Furthermore, there is now available a new software, found on many websites and downloadable mobile applications, that is called an investment calculator.

As its name suggests, an investment calculator helps you determine what kind of profit you could turn from an investment you’ve made or are planning to do. However, when learning to invest, one must set some goals, choose what they want to invest in and make a fundamental analysis of the company from which they wish to purchase bonds or stocks. The investment calculator helps you, based on the information you give, to calculate how much profit you will make by putting a sum into a bank account or by purchasing bonds from the government or a company.

We’ve hypothetically tried an investment calculator or two, and this is the information it requires and the information it offers: say you want to open a bank account starting with a base sum. You want it to be a savings account, so you will also add money to it regularly, besides the interest the bank offers you. The information that the investment calculator will need is your starting balance – the initial sum you deposit –, the annual rate of return offered by the bank, the sum you plan on contributing with monthly and the period of time you plan on contributing. Then you type in the period of time you want to collect your sum in, or just type a value to see how much your sum will be worth in X years.

The investment calculator immediately gives you the results, telling you the X-year value you will get, the total interest your sum received and your total contributions. Some investment calculators also offer graphics or pie charts to show you how your deposited sum will grow over the years, so you can get a clear picture of what you are doing. This method of calculating your investments can be quite helpful, especially for those who are lost in all the business mumbo-jumbo and want it explained in clearer terms.

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