Question

To what amount will the following investment accumulate?

$29,861, invested today for 36 years at 13.06 percent, compounded monhtly.

Answer 1

FV = Total accumulated amount; PV = Invested amount

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FV = PV x (1+Rate/12)^(12 x Years)

FV = 29861 x (1+13.06%/12)*(12*36)

FV = $3,205,915.16

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OR

Using financial calculator BA II Plus - Input details:	#
I/Y = Rate / Frequency of compounding =	1.088333
PMT = Payment or Coupon or Regular payments / Frequency =	$0.00
N = Total number of periods = Number of years x frequency =	432.00
PV = Present Value =	-$29,861.00
CPT > FV = Future Value =	3,205,915.16
Formula: FV = |PV| x (1+R)^N =
FV = 29861* (1+0.01088333)^432 =	3,205,915.16