SOLUTION: what is the formula to calculate investing $250 per month at 6% compounded monthly for 30 years?

Question 832561: what is the formula to calculate investing $250 per month at 6% compounded monthly for 30 years?
Answer by josgarithmetic(39629) (Show Source): You can put this solution on YOUR website!
Try to derive a formula!

Initial balance, $250 dollars.
Rate is 6%, compounded MONTHLY. The monthly rate then is (6/12)% because the year is cut into twelve equal parts. This means, monthly rate is 0.5%.

Focus on the accumulated "balance" for some m number of months investing in this account.

Month_____________________Balance
0_________________________ , not earned any interest yet.
1_________________________
2_________________________
3_________________________
.
.
m_________________________

Not certain if you want a formula for time in years or time in months. The obviously made formula for m for months is , using B for balance.
-
You could modify for time in years like, y for count of years, m for count of months, , ; the exponent would still mean, "months", but can be used in the formula as using y for number of years.

----That last set of formulas is not rendering correctly. The exponent is in the last formula.
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