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What is the equation for the future value of a 401k with monthly contributions?
e.g. i contribute $200 per month for 20 years, what is the formula to find out what i will have in my account at the end of 20 years?
1 Answer
- 1 decade agoFavorite Answer
As a financial advisor, I use a similar tool to the one at the following web-site. Depending upon your age and investment risk, you can estimate between 5 - 8% if you an average risk tolerance over a 20 year period (time in the market ... 5 versus 20 years) is crucial to get an average rate of return.
