Answer:
Total FV= $2,555,406.98
Explanation:
Giving the following information:
Investment 1:
Monthly deposit= $300
Number of months= 12*45= 540
Interest rate= 0.09/21= 0.0075
Investment 2:
Monthly deposit= $500
Number of months= 12*20= 240
Interest rate= 0.09/21= 0.0075
To calculate the future value, we need to use the following formula on each investment. I separated into two to simplify calculations.
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Investment 1:
FV= {300*[(1.0075^540) - 1]} / 0.0075
FV= $2,221,463.54
Investment 2:
FV= {500*[(1.0075^240) - 1]} / 0.0075
FV= $333,943.44
Total FV= $2,555,406.98
