Question

This is the formula for the future worth of an investment over time with consistent additional monthly payments and a steady rate of return. This can give you a bonus of 200 points. You will not be penalized if you do not do this nor will you be penalized if it is incorrect. This is a challenging problem because of all the mathematics involved. Let’s see how good you really are. FV = PV (1+ r/k) nk +PMT * [ (1+r/k) nk −1] * (1+ r/k) r/k FV : future value PV : initial value R : interest rate K : regular periodic investments

• Annually,
• Semi-annually,
• Quarterly,
• Monthly PMT:
payment (installments) N : years Problem: You wish to start putting money away for your retirement (far-fetched, huh) anyway, how much would you have after 45 years if you started with an initial payment (PV) of $1000.00 and invested $250 (K) monthly. The dividend payments are 6% (R)and you invest $250 a month for the next 45 years. Your investment has an annual rate of return (R) of 6%. Show how you would break this problem down into pieces (your pseudo code). Then show your source code and display your initial investment, rate of return, length of time, monthly payments into the account and the final outcome. Show how much money you invested and what the final amount is, you’ll be surprised. HINT: try doing this problem manually first

Answer 1

The code is given in C++ below

Step-by-step explanation:

#include <iostream>

using namespace std;

int main()

{

float fv,pv,r,k,n,pmt,totalmoneyinvested;

pv=1000.00;

r=6/100;

k=12; //The value of k should be 12 for monthly installments

n=45;

pmt=250;

totalmoneyinvested=pv+(pmt*12*45); //The total money you invested

fv=pv*(1+r/k)*n*k+pmt*((1+r/k)*n*k-1)*(1+r/k)*r/k;

cout<<"Initial Investment:"<<" $"<<pv;

cout<<"\\Rate Of Return:6%";

cout<<"\\Length of Time:"<<n<<"year";

cout<<"\\Monthly Payment:"<<" $"<<pmt;

cout<<"\\Final Amount:"<<" $"<<fv;

cout<<"\\The Money You Invested Is $"<<totalmoneyinvested<<" And The Final Amount Is $"<<fv;

return 0;

}