Question

how much will be in your fund if you get a steady return of 10% compounded monthly? (this is comparable to the average annual return on the NY stock exchange from 1950-2000).

Answer 1

How much was in the fund when you started?

Answer 2

http://www.thecalculatorsite.com/images/compound-interest-formula-diagram.png

Answer 3

Suppose that you inherit $100,000 and invest it until you retire 40 years from now

Answer 4

for your given starting value of 100,000

n = 40(12) = 480
i = .10/12 = .008333...

amount = 100000(1.008333...)^480
= ....

use your calculator, and yes, you can retire quite nicely.

Answer 5

so is the answer $5,370,066.23?

Answer 6

yes, the pennies might be off slightly depending on the calculator.
I did:
.10/12
=
+1
=
y^x
480
=
x 100000
=
5,370,066.31

Answer 7

thank you