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I was wondering if someone can direct me to, or explain, calculations regarding reinvestment. For instance, say your initial investment is \$15,000, and via investing in stock you typically have a monthly return \$1,500 (10%), and you reinvest that \$1,500 so that the second month your investment is \$16,500. How much would you have in 5 years granted this 10% return continued each month?

What type of calculator would you use for this?

curious
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Patrick
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1 Answers1

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If your return in a month is $r$ and the initial investment is $P$, after one month your have $P(1+r)$, after two months you have $P(1+r)^2$ and after $n$ months you have $P(1+r)^n$ Any calculator that does powers will work for this.

Ross Millikan
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