Calculators for everyday use!
Custom Search
Home Average Speed Decimal To Fraction

Reserve Fund

A reserve fund is a sum of money reserved for some specific future event or some emergency. It is a specific amount intended to be accumulated through periodic savings assisted by the power of compound interest. This future sum can be used to replace a piece of aging equipment.

The central question is what sum saved now for a given period will amount to the reserve fund required?

There are four basic steps:-

  1. Determine the rate of interest applicable to a specific time period compared to the yearly interest rate. This will not normally be the yearly rate divided by 12 to determine the monthly rate because interest is earned throughout the interval.

    Formula :D=(1+R)1/12 -1 where R is the yearly rate of discount. This is used to determine the present value of the Reserve Fund ie. D multiplied by Reserve Fund.

  2. Secondly, get the cumulative discount rate (CDR). The formula used is 1-(1+R)-n/R. This will be used to reflect the time value of periodic investments accumulated over the entire lifetime of the project.
  3. Thirdly, multiply required funds (RF) by the discount figure (D) to determine the present value (PV) of the Reserve Fund.
  4. Fourthly, divide the PV of the required Reserve Fund by the cumulative discount rate (CDR) to determine the periodic sum to invest to, in due course, amount to the Reserve Fund.

To use the Reserve Fund calculator:-

  • Input the amount of the required fund.
  • Input the number of years.
  • Input the rate of interest.

Reserve Fund



Home About Us
Contact Us Which Day This Date Add Time To Date

CLICK HERE if you have any ideas for calculators you would like to see added; or improvements to existing ones made. Please tell us of any errors observed!

About Numbers
Combine & Permutate
Roman/Arabic Numerals
Factors Of A Number
Mental Multiplication
Nature Of Numbers
Prime Numbers
Random Numbers Generator
Square Root Progression
Binary To Decimal
Liquid Measures
Roman/Arabic Numerals
Fahrenheit To Centigrade
Number Base Converter
Dates & Times
Add/Subtract Time Elements
Add/Subtract Time From Date
Days Between Dates
Days In Consecutive Months
Divide Time Into Segments
Months Of The Year
Multiply/Divide Time
Which Day This Date
Which Week Of The Year
Credit Card Calculator
Cumulative Discount Tables
Discount Tables
Internal Rate Of Return
Payback Period
Rates Of Interest
Rental Equivalents
Reserve Funds
Time To Accumulate Funds
Convert Decimal To Fraction
Convert Fraction To Decimal
Add/Sub/Mul/Div Fractions
Add/Subtract Lengths
Lengths Conversions
Multiply/Divide Lengths
Multiplication Tables
Multiply/Divide Lengths
Multiply/Divide Time
Multiply/Divide Weights
Aspect Ratio Calculator
Average Speed Calculator
Component Of A Circle
Create And Compare Colors
Mean And Standard Deviation
Spaces In The Alphabet
Zodiac Signs
Percentage Change
Add/Subtract Weights
Multiply/Divide Weights
Weights Conversions