Is annualized income a nominal interest rate or a real interest rate?
Now let's make an assumption: invest in 500 yuan every month with a nominal interest rate of 8%, and the investment income after five years of investment is calculated as follows:
F=A*(( 1+i)^n- 1)/i
Where: the final value of F annuity A annuity N interest multiplied by I actual interest rate.
a = 500n = 12 * 5 = 60 I = 8%/ 12 = 0.667%
The calculation result F=36738.43 yuan.
In other words, the total capital after five years is 36,738.43 yuan.