What is the future value of $ 300 deposited into a mutual fund account at the end of every month for the next 50 years? Assume that your investment compounds monthly and that you earn 12 % per year

What is the future value of $ 300 deposited into a mutual fund account at the end of every month for the next 50 years? Assume that your investment compounds monthly and that you earn 12 % per year

 

 

answer:

The formula to get future value of annuity,
Future Value = Periodical deposit*((((1+i)^n)-1)/i)
= 300*((((1+.01)^600)-1)/.01) Where, Monthly adjustment
= $ 1,17,17,502 i = interest rate = 12%/12 = 1%
n = period = 50*12 =            600
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