SOLUTION: If I invested my savings of $6516.90 in an account with 6% interest which compounds monthly, how much money would I have in 10 years, 20 years and 30 years?

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Question 766418: If I invested my savings of $6516.90 in an account with 6% interest which compounds monthly, how much money would I have in 10 years, 20 years and 30 years?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
formula to use is:

fv = pv * (1 + air/c) ^ (y * c)

fv = future value
pv = present value
apr = annual percent interest rate
air = annual interest rate = apr / 100
c = number of compounding periods per year.
y = number of years
y1 = 10
y2 = 20
y3 = 30
pv = 6516.90
apr = 6
air = .06

in your problem, this is what happens:

y1 * c = 10 * 12 = 120
y2 * c = 20 * 12 = 240
y3 * c = 30 * 12 = 360

air / c = .06 / 12 = .005
1 + air / c = 1 + .005 = 1.005

your formulas become:

fv1 = 6516.90 * (1.005)^120 = 11856.83
fv2 = 6516.90 * (1.005)^240 = 21572.27
fv3 = 6516.90 * (1.005)^360 = 39248.52