Question

How much do you need to save every monthly (assuming equal amount of savings each month) in order to have 100,000 dollars in 10 years assuming your savings/investments return 12% per year?

Answer 1

Information provided:

Future value= $100,000

Time= 10 years*12= 120 months

Interest rate= 12%/12= 1% per month

The amount of savings every month is calculated with the help of a financial calculator by entering the below:

FV= 100,000

N= 120

I/Y= 1

Press the CPT key and PMT to compute the amount of savings every month.

The value obtained is 434.71.

Therefore, the amount of savings every month to have $100,000 dollars in 10 years is $434.71.

In case of any query, kindly comment on the solution.