SOLUTION: You invest $1000 per month in an account earning 6.5% compounded monthly, how much will be in your account after 25 years? Round to nearest penny.

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Question 1140555: You invest $1000 per month in an account earning 6.5% compounded monthly, how much will be in your account after 25 years? Round to nearest penny.
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
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There are two major types of such annuity saving plans.

One is the ordinary annuity plan, when the money is deposited at the end of each month.

The other is annuity due saving plan, when the money is deposited at the beginning of each month.

A professionally formulated finance problem should come with the certain designation of a plan.

Since the problem in the post came without such a designation, it is formulated UNPROFESSIONALLY.


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If you want to learn more about these saving plans, read the lessons
    - Ordinary Annuity saving plans and geometric progressions
    - Annuity Due saving plans and geometric progressions
    - Solved problems on Ordinary Annuity saving plans
in this site.