Question 832561: what is the formula to calculate investing $250 per month at 6% compounded monthly for 30 years?
Answer by josgarithmetic(39629)   (Show Source):
You can put this solution on YOUR website! Try to derive a formula!
Initial balance, $250 dollars.
Rate is 6%, compounded MONTHLY. The monthly rate then is (6/12)% because the year is cut into twelve equal parts. This means, monthly rate is 0.5%.
Focus on the accumulated "balance" for some m number of months investing in this account.
Month_____________________Balance
0_________________________ , not earned any interest yet.
1_________________________
2_________________________
3_________________________
.
.
m_________________________
Not certain if you want a formula for time in years or time in months. The obviously made formula for m for months is  , using B for balance.
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You could modify for time in years like, y for count of years, m for count of months,  ,  ; the exponent would still mean, "months", but can be used in the formula as  using y for number of years.
----That last set of formulas is not rendering correctly. The exponent is  in the last formula.
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