Question 1075716
you can solve this using the following calculator.


<a href = "https://arachnoid.com/finance/" target = "_blank">https://arachnoid.com/finance/</a>


the following pictures show the result of each calculation.


the first one is investing 10,000 at 6% per year compounded monthly.


the second one is investing 1,000 at the end of each month at 6% per year compounded annually.


<img src ="http://theo.x10hosting.com/2017/040801.jpg" alt="$$$" </>


<img src ="http://theo.x10hosting.com/2017/040802.jpg" alt="$$$" </>


the inputs to the calculator are whatever is required except for the number of periods.


the calculator then determines the number of periods.


the number of periods are in months.


you find the monthly interest rate by dividing 6% by 12 and you get .5% interest per month.


the results are that it will take 461.67 months to get 100,000 when you invest 10,000 up front, and it will take 81.3 months to get 100,000 when you invest 1,000 at the end of each month.


461.67 months is equal to 38.4725 years.


81.3 months is equal to 6.775 years.


keep in mind that, when you invest 10,000 up front, that's your total investment, but when you invest 1,000 at the end of each month, your total investment is 80.3 thousand.


that's a big difference and the primary reason why it takes so much longer when you invest 10,000 up front and nothing else.


there are formulas you can use to do this manually, but why bother when the calculator can do it for you.


manual formulas can be found at the following link.


<a href= "https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes" target = "_blank">https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes</a>