So what do you get?

You get $956,434 and

I'm going to avoid the cents.

So everybody recognize this?

So, it's pretty straightforward and I'm going to leave it there and

I'm going to toggle back to our presentation.

So now we know, by the way, this is art form.

I'm going between that different media without you even knowing,

I hope you like that.

Anyway, so PV60.

We saw was, and I'm going to

confirm this with my own notes,

956,434.

I'm writing all these details, simply because as I said,

my philosophy is that I will not give you resources unless they

are absolutely necessary for you to then sit back and consume.

I want you to work through these problems yourself, so

I'm giving you some minimal information.

Now the problem is I cannot stay here.

I got to match the tools I have to the problem I can do.

Now clearly, when you become proficient, you can do this on an Excel and

do it all faster and so on.

But let's do it a little bit logically, I want to bring it back here.

Why do I want to do that?

And the reason is,

I do know how to calculate a PMT, which I'm trying to calculate.

What is my saving monthly?

If I know its future value at this point, but if there's a gap, it's a problem.

So why not take the problem to something you know how to do rather than

just wait there and expect some magic to occur and it's not a big deal.

It helps your thinking.

So now what do we do?

Let's go back and try to understand what's going on and

do Excel again and so what I'm going to do now is I'm going to,

as I said before, toggle back to Excel.

Now the good news is I already have a number up there, 956.

So let me take =pv.

Why did I do PV?

Because now, I am bringing something in to your 60 to your 50 to match what I want.

So let's do it.

We have to be a little careful, because I think, as I said, if you're not careful,

you'll but in the wrong numbers.

So now, 0.08/12.

Again, please remember, not 8%, but 12 of that.

How many periods?

Well, between 50 and 60.

There are 10 years, put 120 months.

So we've got those two numbers and now we need to figure out what do I

put in next and remember the next item here is PMT.

That's how it's been set up in Excel, but I don't have a PMT.

This time, I don't.

I put a zero there, but I do have future value.

And the future value is sitting in its cell.

We just solved the problem, I retained that cell A1.

Look what happens.

I think this happened last time too.

Just because you're doing it monthly, it doesn't mean this won't happen.

The value has dropped drastically.

In fact, to less then half and what's the reason for it?

120 months have passed and the monthly interest rate is non-trivial.

So now we are at a point where this again.

Again, let me just toggle back to the PowerPoint.

Now the good news is where am I?

I am now at this point and I have a number that I can deal with,

I think it's 430,896.

430,896.

So what does this number mean?

Let's just pause for a second.

It was more than twice here.