SOLUTION: if you invest $100 at the end of each month in a fixed-interest mutual fund paying annual interest of 6% compounded monthly, how much will your investment be worth after 10 yrs?

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Question 70124: if you invest $100 at the end of each month in a fixed-interest mutual fund paying annual interest of 6% compounded monthly, how much will your investment be worth after 10 yrs?
Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website!
if you invest $100 at the end of each month in a fixed-interest mutual fund paying annual interest of 6% compounded monthly, how much will your investment be worth after 10 yrs?
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Sounds like an annuity. Here's the "Future Value of Ordinary Annuity" formula.
S = R [(1+i)^n-1]/i
S is the future value
R is the periodic payment
i is the periodic interest (in your case that is 0.06/12=0.005)
n is the number pf payments (in your case n= 10*12 = 120
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A=100[(1.005)^120 - 1]/0.005
A=100[0.819396734]/0.005
A=100*363.879378
A=$36,387.94
Cheers,
Stan H.