If you save $200 per month for 20 years at 3% interest you would have?

How much interest did you earn?

Guest Apr 20, 2017

#1**0 **

Use this formula to find the Future Value of the investment:

FV=P{[1 + R]^N - 1/ R}

FV=200 x {[1 + 0.03/12]^(20*12) - 1 / 0.03/12}

FV=200 x 328.301998.......

**FV =$65,660.40 - This is what your $200 per month will be worth in 20 years or 240 months.**

**$200 x 240 =$48,000 - This is how much you deposited in 20 years.**

**$65,660.40 - $48,000 =$****17,660.40 - This is the interest you would earn in 20 years.**

Guest Apr 20, 2017