Anonymous
Anonymous asked in Education & ReferenceHomework Help · 2 months ago

Calculate the future value of $12,000 invested for 18 years assuming an annual interest rate 12% compounded monthly?

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  • Don G
    Lv 7
    2 months ago
    Favorite Answer

    The formula for the FV of $1 is PV x (1+R)^N, or 12,000 x (1.01)^216 = 102,943.

    Since it's compounded monthly, R = 12% / 12 and N = 18 x 12

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  • 2 months ago

    If you just want the number, any spreadsheet program or scientific calculator has a future value function.

    If this is for a class, your textbook tells you how to do the math.

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  • Amy
    Lv 7
    2 months ago

    LOL, you're not gonna get 12% as a long-term average. 

    You might get 12% one year and -5% the next year.

     

    If you asked this question under "Homework help" instead of personal finance, someone might have told you which formula from your textbook to use for monthly compound interest.

    • STEVEN F
      Lv 7
      2 months agoReport

      Actually, 12% is the 70+ year average stock market return.

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  • Anonymous
    2 months ago

    FV = 12,000 * 1.12^18

    Might want to actually look in your textbook one of these days.

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