a person was able to invest 1,000 per month for 30 years with interest rate 5%....

Question

Question

a person was able to invest 1,000 per month for 30 years with interest rate 5%.

1. find out how much the person will have in 30 years?

Answer 1

Answer #1

Calculate the amount as follows:

Number of investments = 30 x 12 = 360

Monthly interest rate = 5% / 12 = 0.4167%

Amount invested each month = 1,000

Amount that the person will have in 30 years = 1,000 x [(1 + 0.4167%)^360 - 1]/0.4167% = 832,259

Therefore, in 30 years, the person will have $832,259.

Answer 2

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