Consider an investor who invests $600 per month (end-of-month)over thirty years in a mutual fund that earns 1% per month.What is the future value of her savings?
A) $2,096,978.48
B) $2,606,514.35
C) $2,159,806.22
D) $2,122,696.21
E) $2,545,722.36

Question

Quizplus · Accepted Answer

FV = PMT × 11ea7fdb_fc15_21df_a768_35f54a231025_TB2902_11 FV = 600 × 11ea7fdb_fc15_21e0_a768_373c413f0912_TB2902_11 = $2,096,978.48
Using a financial calculator:
N = 360, I/Y = 1, PV = 0, PMT = -600, cpt FV = $2,096,978.48

Consider an Investor Who Invests $600 Per Month (End-Of-Month)over Thirty