Saturday, December 17, 2011

How to calculate dividend income based on future 'base amount' invested?

For example:


Lets say I invest 120 dollars per week for 38 years into a money market fund that has an average 7-day yield of 3.5%.





The 'base amount' invested would be 38 years * 52 weeks in a year * $120/week invested == $ 237,120.





Can someone provide me with a way to calculate how much dividend income this would generate for a single month at a given base value?|||This is a regular investment problem.





The answer is $489,185


I have a financial calculator. The formula is too complicated.

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