Stephen has been investing $2,400 at the beginning of each month for the past 10 years...

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Stephen has been investing $2,400 at the beginning of each month for the past 10 years...

Stephen has been investing $2,400 at the beginning of each month for the past 10 years in a growth mutual fund. How much is the fund worth now assuming he has earned 10% compounded annually on his investment?

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Answer 1

Answer #1

APR(monthly) = 10[(1.10)^1/12 - 1] 0.00797

APR(monthly) = 9.569%

Calculating Future Value,

using TVM Calculation,

FV = BEG[PV = 0, PMT = 2,400, N = 120, I = 0.09569/12]

FV = $483,499.12

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Answer 2

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