You plan to save $340 per month starting today for the next 43 years "just to...

You plan to save $340 per month starting today for the next 43 years "just to start the month off right." You feel that you can earn an interest rate of 10 percent compounded monthly. How much will there be in the account 43 years from today?

Expert Solution

PMT = $340
Nper = 43 * 12 = 516
Rate = 10% / 12
PV = 0

Amount at the end of 43 years can be calculated by using the following excel formula:
=FV(rate,nper,pmt,pv,beginning of the period)
=FV(10%/12,516,-340,0,1)
= $2,937,324.38

Amount at the end of 43 years = $2,937,324.38

jeff jeffy answered 2 years ago

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