SOLUTION: You deposit $500 each month in an account earning 8% interest compounded monthly. How much will you have in 35 years? How much total interest will you earn?

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Question 1175453: You deposit $500 each month in an account earning 8% interest compounded monthly.
How much will you have in 35 years?
How much total interest will you earn?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
use the calculator at

inputs are:

pv = 0
fv = 0
np = 35 years * 12 months per year = 420 months.
pmt = -500 per month.
ir = 8% per year / 12 months per year = .6666666666 per month.
payment at end of time period.

click on fv.
your answer is you will have 1,146,941.24 dollars at the end of the 35 year investment period.

here are the results from using that calculator.




the payment is negative because it is money going out.
the future value is positive because it is money coming in.
if you entered the payment as positive, the present value would have been negative, although the absolute value would have been the same.

when you enter the interest rate percent as .66666666666, the calculator uses that figure even though it shows you that value rounded to 6 decimal digits in the display.