<p>In the previous tutorial we discussed the fundamental ideas of building models and doing &#8220;What-If?&#8221; 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 &#8220;What-If?&#8221; analysis.</p><p>So. what are the variables, parameters, assumptions, etc. that we need? I have identified these in my model:</p><ul><li>An initial amount of money already saved. This is the starting amount you have.</li><li>An amount of money you add to your savings each year.</li><li>The rate of return on your savings</li></ul><p>For the remainder of the show notes please see <a href="https://www.ahuka.com/?page_id=761">https://www.ahuka.com/?page_id=761</a></p><p>A copy of the spreadsheet created for this program can be found at <a href="https://www.ahuka.com/?attachment_id=763">https://www.ahuka.com/?attachment_id=763</a></p>
