Explore BrainMass

Explore BrainMass

    Compounding Interest

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I am looking for the formula to solve this problem:
    What interest rate would allow you to accumulate 10,000 in 8 years if you saved $60 per month and earned compound interest monthly.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:10 pm ad1c9bdddf
    https://brainmass.com/economics/finance/compounding-interest-rates-33249

    Solution Preview

    The accumulated amount is FV at the end of 8 years
    Installment is $60 per month
    t= No of periods = 8*12=96
    The formula to be used is

    FV = ...

    Solution Summary

    Help with Compounding Interest is emphasized. The interest rates which would allow you to accumulate 10,000 in 8 years is determined.

    $2.49

    ADVERTISEMENT