If an investor planned to put a side $30 per month for next 20 year and the

Question:

If an investor planned to put a side $30 per month for next 20 year and the investor combined that with $1,000 already saved, how much should the investment be worth after 20 years? Assume 9 percent annual growth with monthly compounding and select the value closest to the correct answer.

a. $7,139

b. $22,597

c. $24,022

d. $26,046

Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...