How much money would I have if I save 200 dlls a month in 26 years if it is compounding at 10% annually?
139495
Let's define some variables for the equation.\n\nD = monthly deposit ($200)\nr = annual interest rate (10% is 0.1)\nn = compound frequency (12 months in a year)\nA = account balance\ni = compounded interest\n\nLet's start the account this month, or month 0.\n\nA(0) = D\n\nOne month later, you make another deposit and earn some interest. But you only earn 1/12 of the 10% with you existing balance, which is r/12.  \n\nA(1) = D + A(0) + i(1)\n\nwhere, i(1) = A(0) * r/n. Which makes\n\nA(1) = D + A(0) + A(0) * r/n , or\nA(1) = D + A(0) * (1 + r/n ), or\nA(1) = D + A(0)*R, if R = 1 + r/n, but A(0) is D, so\nA(1) = D + D*R\n\nTwo months later, you make another deposit and earn some interest on the balance A(1). Similarly calculating,\n\nA(2) = D + A(1) * R, or\nA(2) = D + (D + D*R) * R, or\nA(2) = D + D*R + D*R^2\n\nKeep on going to three months later, \n\nA(3) = D + A(2) * R, or\nA(3) = D + D*R + D*R^2 + D*R^3, or\nA(3) = D * (1 + R + R^2 + R^3)\n\nFollowing this pattern, k months later, we get\n\nA(k) = D * (1 + R + R^2 + ... + R^k)\n\nNow, let's calculate the general expression (1 + R + R^2 + ... + R^k) in a closed form.\n\nLet S = (1 + R + R^2 + ... + R^k). Multiply R on both sides, we get\nS*R = (1 + R + R^2 + ... + R^k) * R, or\nS*R = R + R^2 + ... + R^k + R^(k + 1)\n\nSubtracting the two equations S*R and S on both sides, we get\n\nS*R - S = R + R^2 + ... + R^k + R^(k + 1)  - (1 + R + R^2 + ... + R^k)\n\nNotice the terms R all the way through R^k on the right hand side are cancelled and only left with R^(k + 1) - 1. So we have,\n\nS*R - S = S(R - 1) = R^(k + 1) - 1\n\nDividing (R - 1) on both side, we get\n\nS = [R^(k + 1) - 1] / (R - 1)\n\nRewriting the account balance at month k,\n\nA(k) = D * (1 + R + R^2 + ... + R^k), or\nA(k) = D*S = D * [R^(k + 1) - 1] / (R - 1)\n\nNow, 26 years make 26 * 12 = 312 months. But since you start with 0, so your k is actually 311. R = 1 + r/n = 1 + 0.1/12, and D = 200. So\n\nA(311) = 200 * [(1 + 0.1/12)^(311 + 1) - 1] / (1 + 0.1/12 - 1), or\nA(311) = 295667.15330119169 = 295667.15 (round to nearest penny)
851038
compounded annually at 5% rate you will be required to invest $907.03 now to receive $1000 after 2 years.
289683
discounting factors for an interest rate of 8% \nat the end of  year 1 - 100/108 or 1/1.08 = 0.9259\nat the end of  year 2 - 1/1.1664 = 0.8573\nat the end of  year 3 - 1/1.2597 = 0.7938\n\n1.08, 1.1664, 1.2579 compound amounts at the end of year 1,2,3\n\nExpected Cash Flows\n\nDiscounting Factor.. 0.9259\nYear 1 Cash Flow .....$300...$500...$700\nYear 1 Dis Cash Flow..$278...$463...$648\nDiscounting Factor..0.8573.\nYear 2 Cash Flow .....$100...$200...$600\nYear 2 Dis Cash Flow..$86....$172...$514\nDiscounting Factor....0.7938\nYear 3 Cash Flow .....$200...$800...$900\nYear 3 Dis Cash Flow..$159...$635...$714\n\nYear 1\nDisc Cash Flow (x)..278...463...648\nProb P(x)...........0.3....0.4...0.3\nx.P(x) {px}.........83.4--185.2--194.4\n\nExpected Cash Flow in the first year = Sum(px)= $463\n\nYou should be able to calculate the rest..\n\nhttp://www.futureaccountant.com/probability/\n\nhttp://www.schoolingkids.com/
4274
I believe it's around $11,000 monthly, based on my extremely "quick-'n-dirty" calculations. Take a look at the savings calculator link I put in the Source field.
552611
1800Merrill\nBut before you borrow from your 401k be sure to read attached article.
1065155
I would buy an investment property or two, then put the rest in some type of money market fund earning an average of 10% or more. The Rule of 72 states that any money invested @ 10% will double every 7 years.\n\nIf you used 100k of that 400k, on down payments on one or two investment properties to create you some month to month cash flow, and build long term equity. Then the other 300k in a fund, in seven years you'll have 600k, 14years 1.2mil, 21years 2.4mil; geez your retired good for you!!
754068
usually catalogues give you a 52 week account. So it would work out around £50 a month to clear it!
1146788
The formula for compound interest calculation is  \nFuture Value = Principal (1 + monthly interest rate*12/100 )^no. of years\nHence $100 would become = 100(1+ 1.67*12/100)^5\n= $ 100(1+20.04/100 )^5\n= $ 100 ( 1.2004)^5\n= $ 100 * 2.4924697\n= $ 249.25 (rounded to two decimals)
220624
Try this web site\n\nThey have a calulator to adjust prices to different years.
51865
it depends on how much money you have to invest
1162728
From 1000 to 31948 in 10 years is 96.86991 %.\n\nYou have 2 sets of 10 years because from 2025-2005 = 20 years.\n\nTherefore, plus it up twice by 96.86991 %.\n\nFirst 10 years:  31948 * 96.86991 % = 30947.9988\n\nadd 31948 + 30947.9988 = 61895.9976\n\nNext 10 years:\n\n61895.9976 * 96.86991 % = 59958.5972\n\nadd 61895.9976 + 59958.5972 = 121854.5948.\n\n\nA is the closest.  Go with that.
147887
I think saving 10% is a good idea.  Of course, this would be a minimum; there's no need for a maximum.
23947
Making a million dollars throughout one's lifetime is not a difficult task anymore.  It helps to read several books (e.g. Automatic Millionaire) but the real question is, "Do you have the responsibility to spend less than you make and automatically save some every paycheck?" Income doesn't really matter if you can find a way to save $200/month. You may not think that it's possible to save $2,400/year and reach a million dollars, but that's the benefit of compound interest. There will be a certain point in your savings, perhaps after 26 years of constantly saving $200/month in an index mutual fund that gives you a return of 10% or so, the interest you make will begin to grow by the hundreds and thousands.  From that 27th year on up to your 40th year, the interest will grow so fast that you will have a million dollars.  The question is, did you begin saving when you were 20 years old, or when you were 40 years old.  Depending on when you began, you'd be a millionaire at 60 or at 80, a huge difference.  Of course that could also be changed by saving more per month.  It's possible but best to read up on lots of books and see the real cost of becoming a millionaire.  It might be the difference between spending $8 for lunch every day or spending $4 for lunch every day.  A small sacrifice today can yield huge returns later.
743411
I will assume that the interest is simple and compounded annually, just to make the question easier.\n\nYou will reach $1million (US system) 97 years later, at the age of 115.  $1,035,358, actually.\n\nI used a simple formula with an Excel spreadsheet to figure this out.
1095361
First, I should not that the "yield" I have been reporting is the interest earned.  Add $10,000 for the total amount in the account at the end of the investment period.\n\nSecond, you wrote the formula incorrectly.  The formula for continuous compounding has to include the interest rate, so\nA = Pe^(rt)\n\nGiven the information from the previous question ($10,000 at 10% for 2 years), continuous compounding would yield $2,214.03.\n\nIf we know that the bank returned $15,000 on a $10,000 deposit at 10%, the length of time must have been 4.05 years.\n\nIn 6.93 years, a deposit will have doubled.\n\nI apologize for the delay on responding to these questions--I have been on vacation.
640769
$87,947 - by the tenth year\n\nteacher's right!
2953
be ready to spend around $80,000 Us Dlls