You are planning to invest $500 at 12% compounded annually.
How much money would you have after 10, 20 and 30 years?
10yrs=
20yrs=
30yrs=
A = P(1+r)^t
To calculate the future value of an investment, we can use the formula for compound interest:
Future Value = Principal Amount (1 + Interest Rate)^Number of Years
Given that you plan to invest $500 at a 12% interest rate compounded annually, we can calculate the future value after 10, 20, and 30 years using the formula.
For 10 years:
Future Value = $500 * (1 + 0.12)^10
Future Value = $500 * (1.12)^10
Future Value ≈ $1,614.97
For 20 years:
Future Value = $500 * (1 + 0.12)^20
Future Value = $500 * (1.12)^20
Future Value ≈ $4,046.36
For 30 years:
Future Value = $500 * (1 + 0.12)^30
Future Value = $500 * (1.12)^30
Future Value ≈ $10,062.67
Therefore, after 10 years, you would have approximately $1,614.97, after 20 years, you would have approximately $4,046.36, and after 30 years, you would have approximately $10,062.67.