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?
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.