Investments · Example 6

Kaitlyn has analyzed her $12,862.50 quarterly budget using the 50-30-20 budget philosophy, and sees she should be saving or paying down debt with $2,572.50 per quarter. She decides to invest $1,300 quarterly a mutual fund that reports an average return of 11.62% over the 18-year life of the mutual fund. Assuming that this interest rate continues, and is compounded quarterly, how much will her mutual fund account be worth after 5 years?

OpenStax, Contemporary Mathematics · §6.7 Investments · Example 6