1) You earn $5,000 a month. After taxes, social security contributions, and living expenses you have $200 per month that you can and will save. What is the future value of $200 saved every month for 30 years if the annual rate is of return is 12% assume annual compounding period. We are looking for the value of your savings 30 years from the time you stated saving.
2) You earn $5,000 a month. After taxes, social security contributions, and living expenses you have $100 per month that you can and will save. What is the future value of $100 saved every month for 30 years if the annual rate is of return is 12% assume annual compunding period. We are looking for the value of your savings 30 years from the time you stated saving
1.
Monthly Saving = $200
Annual Interest rate = 12%
Tenure = 30 year
Cumulative value after 30 year is calculated in excel and screesn shot provided below:
Cumulative value after 30 year will be $698,992.83.
2.
Monthly Saving = $100
Annual Interest rate = 12%
Tenure = 30 year
Cumulative value after 30 year is calculated in excel and screesn shot provided below:
Cumulative value after 30 year will be $349,496.41
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