Calculate the accumulated amount in each investment after 40 years.

Question

a. $150 invested on the first day of each month at 6% compounded monthly.

b. $900 invested on January 1st and on July 1st at 4% compounded semi-annually.

c. $450 invested on January 1st, April 1st, July 1st, and October 1st at 5% compounded quarterly.

Answer 1

a. FV = 150((1 + .06/12)^12·40 - 1)/(0.06/12)(1 + 0.06/12) = $300217.23

b. FV = 900((1 + 0.04/2)^2·40 - 1)/(0.04/2)(1 + 0.04/2) = $177882.66

c. FV = 450((1 + 0.05/4)^4·40 - 1)/(0.05/4)(1 + 0.05/4) = $229562.86