Explanation:
To calculate the future value of an investment with a given return on balance, monthly rate of return, monthly payment, and number of payments, you can use the formula for the future value of an annuity:
Future Value = P * [(1 + r)^n - 1] / r
Where:
P = Monthly payment
r = Monthly rate of return
n = Number of payments
In this case, using the given values:
P = -$200 (assuming the negative sign represents an outgoing payment)
r = 0.583% (0.00583 as a decimal)
n = 120
The formula becomes:
Future Value = -$200 * [(1 + 0.00583)^120 - 1] / 0.00583
Note that the negative sign indicates that you are making payments rather than receiving them. The future value will represent the accumulated balance after 120 months of making monthly payments.
Please note that this calculation assumes the monthly rate of return remains constant throughout the entire period, and the monthly payments are made at the end of each month.
I hope I helped