Regular deposits balance formula
The formula for the account balance, assuming regular deposits at the end of each month, is as follows
Here t is the number of deposits, and r is the monthly interest rate APR/12 expressed as a decimal.
Vary the amount of deposit, the number of deposits, and the annual percentage rate to see your balance changing by month over the indicated
time period.
Scroll the “Balance after n deposits” to follow your balance at each month.
Balance after 20 deposits:
Questions
1. Is the value of your money increasing at a linear or exponential rate? How can you tell?
2. If you want to retire in 30 years with a nest egg of $1 million, what is lowest APR you need for your account if you can afford monthly deposits of $200?
3. If you plan to make 300 total monthly deposits in an account earning 5% APR, at what deposit number will you be halfway to your nest egg goal?