Let's try something messier:

If we invest $400 a month at 8.4%, how much will we have in 40 years?

investment amount = $400

growth factor = $1.007

interest per period = .007

number of periods = 480
 

final amount = 400 * ( 1.007 ^( 450 ) - 1 / .007 ) * 1.007 = $1,579,791.17

 


TRY IT:

Invest $250 a month at 9%.  How much will you have in 20 years?


One more...  and this one we'll do yearly instead of monthly.  (So, we'll have to assume it's compounded yearly.)

If we invest $5000 a year at 10%, how much will we have in 25 years?

investment amount = $5000

growth factor = $1.10

interest per period = .10

number of periods = 25
 

final amount = 5000 * ( 1.10 ^( 25 ) - 1 / .10 ) * 1.10 = $540,908.83

 


YOUR TURN:

Invest $10,000 a year at 15%.  How much will you have in 35 years?