3 points Save Answe Monthly contributions of $500 are made on the first of every month to an investment that earns 8.5% compounded monthly. How long will it take for the funds to grow to $300,000? 19 years 6 months 19 years 7 months 19 years 2 months 19 years 5 months 19 years 4 months
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To calculate the future value of the monthly contributions, we can use the formula for the future value of an ordinary annuity: \[FV = P \times \left( \frac{(1 + r)^n - 1}{r} \right)\] Where: FV = future value P = monthly contribution r = interest rate per Show more…
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