topic Re: HELP!!! COMPOUND Monthly Return in SAS Procedures

HELP!!! COMPOUND Monthly Return

556 — Fri, 05 Dec 2014 01:27:45 GMT

CompanyA	1.3%	3.9%	1.7%	0.5%	0.1%	3%	4%	5%	1%	0.7%	6%	4.7%
Months	Jan	Feb	Mar	Apr	May	June	July	Aug	Sep	Oct	Nov	Dec

if invest 3000 per month, first monthly return =3000*1.013, second monthly return =(3000+3000*1.013)*3.9% etc...

Total investment period: 10 years , how to write the codes?

Re: HELP!!! COMPOUND Monthly Return

Reeza — Fri, 05 Dec 2014 01:44:48 GMT

How does your input data look like? Is it in rows like that? Do you have multiple companies/months?

Re: HELP!!! COMPOUND Monthly Return

556 — Fri, 05 Dec 2014 02:03:36 GMT

CompanyA	1.3%	3.9%	1.7%	0.5%	0.1%	3%	4%	5%	1%	0.7%	6%	4.7%
Months	Jan	Feb	Mar	Apr	May	June	July	Aug	Sep	Oct	Nov	Dec

Exactly look like the table above

Question: Every month, $3000 is invested and the rate of return is based on the past twelve month's pattern.

It requires us to calculate the total return by monthly investment after 10 years.

For example, the monthly return for the first $3000 invested = $3000*(1+1.3%),

the accumulated monthly return for the next $3000 invested = ($3000*(1+1.3%)+$3000)*3,9%

Total return by monthly investment after 10 years should be $2,611,500.69

Re: HELP!!! COMPOUND Monthly Return

Reeza — Fri, 05 Dec 2014 02:42:47 GMT

What do the months represent? Do you have 120 interest rates, 1 per month?

Re: HELP!!! COMPOUND Monthly Return

556 — Fri, 05 Dec 2014 03:06:36 GMT

12 interest rates only, keep repeating from Jan to Dec

accumulated monthly return

Jan2000 1.3% $3000*(1+1.13) = $3039

Feb2000 3,9% ($3039+$3000)*(1+3.9%) = $6274.521

Mar2000 1.7% ($6274.521+$3000)*(1+1.7%) = $9432.19

Apr2000 0.5% ($9432.19+$3000)*(1+0.5%) = $12494.35

. . .

Dec2000 4.7% ($38989.36+$3000)*(1+4.7%) = $43962.86

Jan2001 1.3% ($43962.86+$3000)*(1+1.3%) = $47573.38

Feb2001 3.9% ($47573.38+$3000)*(1+3.9%) = $52545.74

Dec2010 4.7% ($2491270+$3000)*(1+4.7%) = $2611500.69

Re: HELP!!! COMPOUND Monthly Return

Reeza — Fri, 05 Dec 2014 03:44:05 GMT

Your data can't be in that format, you have character and numeric values in the same variable.

Assuming your interest rates have the variable names ir1-ir12, where ir1=January's interest rate and Ir12 = Decembers interest rate something like the following will work. I think you have some calculation mistakes in your example though, an interest rate of 1.3% is 1.013 not 1.13.

data have;

informat ir1-ir12 percent.;

format ir1-ir12 percent8.1;

input company $ ir1-ir12 ;

cards;

CompanyA 1.3% 3.9% 1.7% 0.5% 0.1% 3% 4% 5% 1% 0.7% 6% 4.7%

;

run;

data want;

set have;

array ir(12) ir1-ir12;

monthly=3000;

value=0;

do i=1 to 10; *for 10 years;

do j=1 to 12; *for 12 months/year;

value=(value+monthly)*(1+ir(j));

end;

output;

end;

run;