In the previous tutorial we discussed the fundamental ideas of building models and doing “What-If?” analysis. Now we need to take these ideas and put them into practice so you can see how this works. To do this I will create a simple model of savings over time. Now, I do want to be clear that this is a very over-simplified model and should not be taken as a good predictor of actual results. The idea is to illustrate the techniques involved in building a model and doing “What-If?” analysis.
So. what are the variables, parameters, assumptions, etc. that we need? I have identified these in my model:
An initial amount of money already saved. This is the starting amount you have.
An amount of money you add to your savings each year.
The rate of return on your savings
For the remainder of the show notes please see http://www.ahuka.com/?page_id=761
A copy of the spreadsheet created for this program can be found at http://www.ahuka.com...tachment_id=763
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HPR - HPR1525: 30 - LibreOffice Calc - A Savings Model
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