You invest $2000 for thirty years at 10% interest. What is the difference at the end of the thirty years if you use monthly versus annual compounding?
(If you don’t know how to do this with your calculator, I highly recommend our Money Not Math class that we will be having at the end of February in Santa Ana, California. A shameless plug for the class but this tool is too important to your financial future that you really need to master what it can do.)
(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to https://www.facebook.com/garyjohnstonseminars for the answer.)
Answer for 12/02/2013 problem:
(N=84,PV= -15,000,PMT=300,FV=0) I=16.24%