1) You earn $8,000 a month. After taxes, social security contributions, and living expenses you have...

1) You earn $8,000 a month. After taxes, social security contributions, and living expenses you have $400 per month that you can and will save. What is the future value of $400 saved every month for 30 years if the annual rate is of return is 12%. Interest is compounded monthly. Your first deposit is made at the end of month 1. We are looking for the value of your savings 30 years from the time you stated saving.

2) You earn $8,000 a month. After taxes, social security contributions, and living expenses you have $200 per month that you can and will save. What is the future value of $200 saved every month for 30 years if the annual rate is of return is 6%. Interest is compounded monthly. Your first deposit is made at the end of month 1. We are looking for the value of your savings 30 years from the time you stated saving.

Expert Solution

								1 Month Interest Rate		1.00%
								1 Year Interest Rate		12.00%
Investment	400 per month
Years	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30
1	400	5523.731	11297.28	17803.06	25133.93	33394.55	42702.81	53191.6	65010.63	78328.6	93335.63	110245.9	129300.9	150772.5	174967.2	202230.4	232951.3	267568.3	306575.7	350530.2	400059.2	455869.7	518758.4	589622.9	669474.9	759454	860844.8	975094.5	1103834	1248901
2	804	5978.969	11810.25	18381.09	25785.27	34128.49	43529.84	54123.51	66060.73	79511.89	94668.99	111748.4	130993.9	152680.2	177116.9	204652.7	235680.8	270644	310041.5	354435.5	404459.8	460828.4	524346	595919.1	676569.6	767448.6	869853.3	985245.4	1115272	1261790
3	1212.04	6438.758	12328.36	18964.9	26443.13	34869.78	44365.14	55064.75	67121.34	80707.01	96015.68	113265.9	132703.8	154607	179288	207099.2	238437.6	273750.5	313541.9	358379.8	408904.4	465836.7	529989.4	602278.3	683735.3	775523.1	878951.8	995497.9	1126825	1274808
4	1624.2	6903.146	12851.64	19554.55	27107.56	35618.47	45208.79	56015.4	68192.55	81914.08	97375.83	114798.5	134430.9	156553.1	181480.9	209570.2	241222	276888	317077.3	362363.6	413393.4	470895	535689.3	608701.1	690972.7	783678.3	888141.3	1005853	1138493	1287956
5	2040.4	7372.177	13380.16	20150.09	27778.63	36374.66	46060.88	56975.55	69274.48	83133.22	98749.59	116346.5	136175.2	158518.6	183695.7	212065.9	244034.2	280056.8	320648.1	366387.3	417927.3	476004	541446.2	615188.1	698282.4	791915.1	897422.7	1016311	1150278	1301235
6	2460.8	7845.899	13913.96	20751.6	28456.42	37138.41	46921.49	57945.31	70367.22	84364.55	100137.1	117910	137936.9	160503.8	185932.7	214586.6	246874.5	283257.4	324254.5	370451.1	422506.6	481164	547260.7	621740	705665.2	800234.2	906797	1026875	1162181	1314648
7	2885.4	8324.358	14453.1	21359.11	29140.98	37909.79	47790.7	58924.76	71470.9	85608.2	101538.5	119489.1	139716.3	162508.8	188192	217132.5	249743.3	286490	327897.1	374555.6	427131.7	486375.7	553133.3	628357.4	713121.9	808636.6	916264.9	1037543	1174203	1328194
8	3314.3	8807.602	14997.63	21972.7	29832.39	38688.89	48668.61	59914.01	72585.6	86864.28	102953.8	121084	141513.4	164533.9	190473.9	219703.8	252640.7	289754.9	331576.1	378701.2	431803	491639.4	559064.6	635041	720653.1	817122.9	925827.6	1048319	1186345	1341876
9	3747.4	9295.678	15547.6	22592.43	30530.72	39475.78	49555.29	60913.15	73711.46	88132.92	104383.4	122694.8	143328.6	166579.2	192778.7	222300.8	255567.1	293052.4	335291.8	382888.2	436521	496955.8	565055.3	641791.4	728259.6	825694.2	935485.9	1059202	1198608	1355695
10	4184.9	9788.634	16103.08	23218.35	31236.02	40270.53	50450.85	61922.28	74848.58	89414.25	105827.2	124321.8	145161.9	168645	195106.4	224923.8	258522.8	296383	339044.7	387117.1	441286.2	502325.4	571105.8	648609.3	735942.2	834351.1	945240.7	1070194	1210994	1369652
11	4626.7	10286.52	16664.11	23850.54	31948.38	41073.24	51355.36	62941.5	75997.06	90708.39	107285.5	125965	147013.5	170731.5	197457.5	227573.1	261508	299746.8	342835.2	391388.3	446099.1	507748.6	577216.9	655495.4	743701.6	843094.6	955093.1	1081296	1223504	1383748
12	5073.0	10789.39	17230.75	24489.04	32667.87	41883.97	52268.91	63970.92	77157.03	92015.48	108758.3	127624.6	148883.6	172838.8	199832.1	230248.8	264523.1	303144.3	346663.5	395702.1	450960.1	513226.1	583389	662450.4	751538.7	851925.6	965044.1	1092509	1236139	1397986
						Therefore, Amount invested will become				1397986
										1 Month Interest Rate		0.50%
Investment	200 per month									1 Year Interest Rate		6.00%
Years	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30
1	200	2679.448	5311.823	8106.557	11073.66	14223.78	17568.18	21118.86	24888.54	28890.72	33139.75	37650.85	42440.18	47524.91	52923.26	58654.56	64739.36	71199.45	78057.99	85339.55	93070.22	101277.7	109991.4	119242.5	129064.3	139491.8	150562.4	162315.9	174794.3	188042.4
2	401	2892.845	5538.382	8347.09	11329.03	14494.9	17856.02	21424.45	25212.98	29235.17	33505.45	38039.1	42852.38	47962.54	53387.87	59147.83	65263.06	71755.45	78648.28	85966.25	93735.57	101984.1	110741.4	120038.8	129909.6	140389.2	151515.3	163327.5	175868.3	189182.6
3	603.005	3107.31	5766.074	8588.825	11585.68	14767.37	18145.3	21731.58	25539.04	29581.35	33872.97	38429.3	43266.65	48402.35	53854.81	59643.57	65789.37	72314.23	79241.52	86596.08	94404.25	102694	111495.1	120838.9	130759.1	141291.2	152472.8	164344.1	176947.6	190328.5
4	806.02	3322.846	5994.904	8831.769	11843.61	15041.21	18436.03	22040.23	25866.74	29929.26	34242.34	38821.44	43682.98	48844.36	54324.09	60141.79	66318.32	72875.8	79837.73	87229.06	95076.27	103407.5	112252.5	121643.1	131612.9	142197.6	153435.2	165365.9	178032.4	191480.1
5	1010.05	3539.46	6224.879	9075.928	12102.82	15316.41	18728.21	22350.43	26196.07	30278.9	34613.55	39215.55	44101.39	49288.58	54795.71	60642.5	66849.91	73440.18	80436.92	87865.21	95751.65	104124.5	113013.8	122451.4	132471	143108.6	154402.4	166392.7	179122.5	192637.5
6	1215.1	3757.158	6456.003	9321.308	12363.34	15592.99	19021.85	22662.19	26527.05	30630.3	34986.62	39611.63	44521.9	49735.03	55269.69	61145.71	67384.16	74007.38	81039.1	88504.53	96430.41	104845.1	113778.9	123263.6	133333.4	144024.2	155374.4	167424.7	180218.2	193800.7
7	1421.176	3975.943	6688.283	9567.914	12625.15	15870.96	19316.96	22975.5	26859.69	30983.45	35361.55	40009.69	44944.51	50183.7	55746.04	61651.44	67921.08	74577.42	81644.3	89147.05	97112.56	105569.4	114547.8	124079.9	134200	144944.3	156351.3	168461.8	181319.2	194969.7
8	1628.282	4195.823	6921.725	9815.754	12888.28	16150.31	19613.54	23290.38	27193.99	31338.37	35738.36	40409.74	45369.23	50634.62	56224.77	62159.7	68460.68	75150.3	82252.52	89792.79	97798.12	106297.2	115320.5	124900.3	135071	145869	157333	169504.1	182425.8	196144.6
9	1836.423	4416.802	7156.333	10064.83	13152.72	16431.07	19911.61	23606.83	27529.96	31695.06	36117.05	40811.78	45796.08	51087.79	56705.89	62670.5	69002.99	75726.05	82863.78	90441.75	98487.12	107028.7	116097.1	125724.8	135946.4	146798.4	158319.7	170551.6	183538	197325.3
10	2045.605	4638.886	7392.115	10315.16	13418.49	16713.22	20211.17	23924.86	27867.61	32053.53	36497.64	41215.84	46225.06	51543.23	57189.42	63183.85	69548	76304.68	83478.1	91093.96	99179.55	107763.8	116877.6	126553.5	136826.1	147732.4	159311.3	171604.4	184655.7	198511.9
11	2255.833	4862.081	7629.076	10566.73	13685.58	16996.79	20512.22	24244.49	28206.95	32413.8	36880.13	41621.92	46656.18	52000.95	57675.37	63699.77	70095.74	76886.21	84095.49	91749.43	99875.45	108502.7	117662	127386.2	137710.2	148671	160307.8	172662.4	185778.9	199704.5
12	2467.112	5086.391	7867.221	10819.57	13954.01	17281.77	20814.79	24565.71	28547.98	32775.87	37264.53	42030.03	47089.47	52460.95	58163.74	64218.27	70646.22	77470.64	84715.97	92408.18	100574.8	109245.2	118450.3	128223.2	138598.8	149614.4	161309.4	173725.7	186907.8	200903
							Therefore, Amount invested will become				200903

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