Question

"If you deposit $1400 per MONTH into an account that earns an ANNUAL nominal interest rate...

"If you deposit $1400 per MONTH into an account that earns an ANNUAL nominal interest rate of 11%, compounded monthly, how much money will you have in 10 years?"

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Answer #1

Information provided:

Monthly deposit= $1,400

Interest rate= 11%/12= 0.9167% per month

Time= 10 years*12= 120 months

The question is solved by calculating the future value.

Enter the below in a financial calculator to compute the future value:

PMT= 1,400

I/Y= 0.9167

N= 120

Press the CPT key and FV to compute the future value.

The value obtained is 303,797.39

Therefore, I will have $303,797.39 at the end of 10 years.

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

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