2nd) (and the one that I am trying to find a formula for) Suppose that I start an IRA with an initial investment of $1000 and every year I add $3000 more to it. What formula can I use to determine how much the IRA will be worth in a certain number of years given an expected rate of return. You're looking for the future value of an annuity, which gets a little messier. One formula is:((1+r)^n) - 1------------- rwhere r is the expected rate of return (per period) and n is the number of periods.That will work for the $3000 annual additions. Then you'll need to add in the value of your initial contribution of $1000 figured from the formula given to you earlier.--Peter
((1+r)^n) - 1------------- r
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra