To what amount will the following investment accumulate?

Business & Finance
Tutor: None Selected Time limit: 1 Day

$18,384, invested today for 22 years at 6.91 percent, compounded monthly. 
Aug 27th, 2015

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Interest compounded monthly - added at the end of each month)


YearYear InterestTotal InterestBalance
1$1,311.35$1,311.35$19,695.35
2$1,404.89$2,716.24$21,100.24
3$1,505.10$4,221.34$22,605.34
4$1,612.46$5,833.80$24,217.80
5$1,727.48$7,561.28$25,945.28
6$1,850.70$9,411.98$27,795.98
7$1,982.72$11,394.70$29,778.70
8$2,124.14$13,518.85$31,902.85
9$2,275.66$15,794.51$34,178.51
10$2,437.99$18,232.49$36,616.49
11$2,611.89$20,844.39$39,228.39
12$2,798.20$23,642.59$42,026.59
13$2,997.80$26,640.39$45,024.39
14$3,211.63$29,852.02$48,236.02
15$3,440.72$33,292.74$51,676.74
16$3,686.15$36,978.90$55,362.90
17$3,949.09$40,927.99$59,311.99
18$4,230.78$45,158.78$63,542.78
19$4,532.57$49,691.35$68,075.35
20$4,855.88$54,547.23$72,931.23
21$5,202.26$59,749.49$78,133.49
22$5,573.34$65,322.83$83,706.83

principal=18384

time=22 years

Rate=6.91%

n=1/12

Formula=A=P(1+r/n)nt

18383*(1.069)12*22


$8,3707



Base amount: $18,384.00
Interest Rate: 6.91%
Effective Annual Rate: 7.13%
Calculation period: 22 years


Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 27th, 2015

I'm still confused with the formula. How would I calculate the future value for this question? Your numbers were wrong at the end and didn't get the same numbers when i calculated it. 

Aug 27th, 2015

 Let me repeat usig a simple formula

 may be there was a slight change by using a long way

Aug 27th, 2015

Annual Compound Interest Formula:

A = P(1+r/n)^nt

 Principal=18,384

T=22 years

Rate=6.91%

n=12

18384(1+0.069/12)^12*22

18384(1.0075)^264

18384*4.553

 using 3 decimal places

=$83,706.8

Aug 27th, 2015

use effective rate of  4.553 per year

Aug 27th, 2015

I am sorry for the previous effective rate but the table above is very correct

Aug 27th, 2015

you don't have to add 1 for the rate in the formula since it is 6.91%?

Aug 27th, 2015

Effective Annual Rate = (1+(r/n))n − 1

 U MUST add because it helps us to find the annual effective rate 



Aug 27th, 2015

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