Question

You begin to put $6,000 every month in an investment account paying 8% interest for the next 10 years, and you will deposit the money at the beginning of each period. How much will you have at the end of the 10 year period?

Answer 1

- Periodic monthly deposit at the beginning of each period for 10 years = $6,000

Calculating the future Value at the end of 10 years:-

Where, C= Periodic Payments = $6000

r = Periodic Interest rate = 8%/12 = 0.6666%

n= no of periods = 10 years*12 = 120

Future value = $1,104,994.05

So, you have at the end of the 10 year period $1,104,994.05

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