Question 1185786
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How much money will I have if I am going to deposit $1000 every month (starting now) 
for 5 years if the interest rates are 6%/a compounded monthly?
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            What @Theo calculated for you,  was the  Ordinary  Annuity saving plan,  when the regular deposits are made at the END of each month.

            The given problem asks about the  Annuity  Due saving plan,  when the regular deposits are made AT THE BEGINNING of each month.


            So,  @Theo's calculations are not appropriate for this problem.


            THEREFORE,  I came to bring you a correct solution.



<pre>
It is a classic Annuity Due saving plan. The general formula is 


    FV = {{{P*(1+r)*(((1+r)^n-1)/r)}}},    (1)


where  FV is the future value of the account;  P is your monthly payment (deposit); r is the monthly percentage yield presented as a decimal; 
n is the number of deposits (= the number of years multiplied by 12, in this case).


Under the given conditions, P = 1000;  r = 0.06/12;  n = 12*5 = 60.  So, according to the formula (1), you get at the end of the 20-th year


    FV = {{{1000*(1+0.06/12)*(((1+0.06/12)^(12*5)-1)/((0.06/12)))}}} = {{{1000*1.005*(((1+0.005)^60-1)/0.005))}}} = $70,118.88.    <U>ANSWER</U>


Note that you deposit only  12*5*$1000 = $60,000.  The rest is what the account earns/accumulates in 5 years.
</pre>

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On &nbsp;Ordinary &nbsp;Annuity and &nbsp;Annuity &nbsp;Due saving plans, &nbsp;see the lessons

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Ordinary-Annuity-saving-plans-and-geometric-progressions.lesson>Ordinary Annuity saving plans and geometric progressions</A>

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problem-on-Ordinary-Annuity-saving-plans.lesson>Solved problems on Ordinary Annuity saving plans</A>

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problem-on-Ordinary-Annuity-saving-plans.lesson>Solved problems on Ordinary Annuity saving plans</A> 

in this site.


The lessons contain &nbsp;EVERYTHING &nbsp;you need to know about this subject, &nbsp;in clear and compact form.


When you learn from these lessons, &nbsp;you will be able to do similar calculations in semi-automatic mode.