A financial analyst invest $2000 dollars per month into a high-risk mutual fund account which earns an average of 13.5%(apy) interest per year, A) after 10.5 years how much money does he have in his account? B) How many years will it take him to earn over 1.5 million?
- I don’t know how to solve this because if you think about it the money he invest in January (month 1) is going to gain the 13.5% interest quicker than the money he invest in December (month 12), so i don’t think i can just add up the total invested in a year ($24,000) and then multiply that by 13.5 . Moreover, the money invested in Year 1 is going to be tremendously greater than the money invested in year 10, any help???
Answers and explanations are GREATLY appreciated!
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how often is the interest compounded?
if it is compounded monthly, then its as complicated as you made it… if it is compounded yearly, it is fairly simple.