Question

if you start making $265 monthly contributions today and continue them for four years, what is the furture value if the compounding rate is 9.75 percent APR?

Answer 1

FV= $15,482.98

Step-by-step explanation:

Giving the following information:

Monthly investment= $265

Number of periods= 12*4= 48

Interest rate= 0.0975/12= 0.00813

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {265*[(1.00813^48) - 1]} / 0.00813

FV= $15,482.98