Ok, for example: if I wanted to turn $1000 into $8000 over a period of 12 months. What is the account growth percentage per month needed to reach $8000. I've tried (8000/1000) / 12, the answer is 67%. But my formula does not compound the gains, so i need a different one. Thanks in advance and have a good day :).
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if you want to compound the gains, the formula is
A = P(1+r)^n
8000 = 1000(1+r)^12
8 = (1+r)^12
1+r = 8^(1/12)
r = 8^(1/12) - 1
r (%) = 100( 8^(1/12) - 1) ≈ 18.92% per month <-----
A = P(1+r)^n
8000 = 1000(1+r)^12
8 = (1+r)^12
1+r = 8^(1/12)
r = 8^(1/12) - 1
r (%) = 100( 8^(1/12) - 1) ≈ 18.92% per month <-----