document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1095683>Question 1095683</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You decide to contribute to a mutual fund that averages 8% return per year. If you contribute $125 monthly,<BR>\n" );
document.write( "- How much will be in the account after 10 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #710200 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=710200\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> your interest rate is 8% per year.<BR>\n" );
document.write( "monthly compounding is assumed.<BR>\n" );
document.write( "your monthly interest rate is 8/12 = .666667% per month rounded to 6 decimal places.<BR>\n" );
document.write( "your number of months are 10 * 12 = 120 months.<BR>\n" );
document.write( "you can use the following calculator to figure out what the future value of your investment is.<BR>\n" );
document.write( "<a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a><BR>\n" );
document.write( "your results are shown below:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2017/093001.jpg\" alt=\"$$$\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your inputs are:<BR>\n" );
document.write( "present value = 0<BR>\n" );
document.write( "future value = 0 or just leave it alone.<BR>\n" );
document.write( "number of periods = 120 which is 10 years * 12 months per year.<BR>\n" );
document.write( "payment amount = -125 dollars.<BR>\n" );
document.write( "it is negative because this is money you are sending out to make your monthly payments.<BR>\n" );
document.write( "payment at is set to end of month.<BR>\n" );
document.write( "you will make you payment at the end of each month.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "you will click on FV and it will tell you that the future value is $22,868.26\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that's how much money you will have in the account at the end of 10 years.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your total payments are 125 * 120 = $15,625.<BR>\n" );
document.write( "the difference is interest earned.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the calculations are made as follows:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "at the beginning of the first month, you have $0 in the account.<BR>\n" );
document.write( "at the end of the first month, you have $125 in the account.<BR>\n" );
document.write( "at the end of the second month, you have $250.83 in the account.<BR>\n" );
document.write( "this is equal to the $125 from the previous month * 1.00666667 + the 125 you are adding in the present month.<BR>\n" );
document.write( "at the end of the third month, you have 377.51 in the account.<BR>\n" );
document.write( "this is equal to $250.85 from the previous month * 1.00666667 + the 125 you are adding in the present month.<BR>\n" );
document.write( "you can follow the calculations from the attached spreadsheet printout.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2017/093002.jpg\" alt=\"$$$\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );