Calculate the future value of $12,000 invested for 18 years assuming an annual interest rate 12% compounded monthly?
- Don GLv 72 months agoFavorite 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
- STEVEN FLv 72 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.
- AmyLv 72 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.
- Anonymous2 months ago
FV = 12,000 * 1.12^18
Might want to actually look in your textbook one of these days.