Every investment that we've seen so far involved making a one time deposit and then letting your investment grow. What if we wanted to keep contributing to the investment account every month like many people do for retirement? In this scenario, the initial value will be changing every year so it's easier to use a spreadsheet.

You are going to invest $1200 at the start of every year into an account that has an annual rate of return of 3%.

1. Complete column C for each year. The initial value will be the total amount in the account from the previous year plus any additional deposits that you've made. Think carefully about what the exponent should be for this calculation.
2. Complete column D by subtracting the total account investment (the money that you deposited) from the total in the account to find how much interest you've earned on your investment.
3. Why are you not able to use an exponent of 10 in this situation?

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A Year 1 2 3 4 5 6 7 8 9 10 fx Year B Yearly Starting Balance January 1 Investment Amount D Account Balance AFTER January 1 Investment E Account Balance with Additional Yearly Interest F Interest Earned This Year Total Interest Earned G H A Year 1 2 3 4 5 6 7 8 9 10 fx Year B Yearly Starting Balance January 1 Investment Amount D Account Balance AFTER January 1 Investment E Account Balance with Additional Yearly Interest F Interest Earned This Year Total Interest Earned G H

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In this scenario youre making regular contributions to your investment account annually and the inte... View the full answer