How much money will an Individual Retirement Account investment have after 20 years if the initial value is $10,000 and $500 is deposited each year thereafter? The investment has averaged a rate of return of 10% compounded annually.
Enter the following values in the input fields:
Present Value = 10,000
Payment/Deposit = 500
Periods = 20
Periods/Year = 1
Interest Rate = 10
Set Payment/Deposit Timing for End.
Now click the Future Value button. Result: Future Value =
95,912.50.
The Total Interest Compounded box also shows the total interest the investment would earn is $75,912.50. See the screen snapshot for this calculation below:
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