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Future value

An employee gets paid at the end of each month and $60 is withheld from her paycheck for a retirement fund. The fund pays 1% per month (equivalent to 12% annually compounded monthly). What amount will be in the fund at the end of 30 months?

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At the end of first month, the fund is $60. This fund will pay 1% interest each month in the next 29 months. This is a compound interest. So at the end of 30 ...

Solution Summary

This shows the future value of a fund with given characteristics.