I hope I have the correct formula. But an IRA has its own formula.
P=monthly deposit, r=interest rate, n=number of periods.
For #2.
Hi, I am new to this site but heard great things about it...Hope you can help me!
Suppose that you save for retirement by contributing the same amount each month from your 23rd bday to your 65th bday, in an account that pays a steady 5% annually interest compunded monthly
1. how much will be in your fund if you get a steady return of 7.5% compunded monthly?
2. how much will be in your fund at age 65 if you saved $100 a month?
3. how much will be in your fund if you get a steady return of 10% componded monthly? (compared to the average annual return of about 11% for all stocks in the NY stock exchange from 1950-2000)
Confuses me please help!