How to become a Millionaire in 5 Years

How to become a Millionaire in 5 Years on HIVE

To determine how much you need to invest initially and add monthly to become a millionaire in 5 years with a 20% annual percentage rate (APR) and compounding interest, we can use the future value of a series formula for compound interest. The formula is given by:

[ FV = P \times \left( \frac{(1 + r)^{nt} - 1}{r} \right) ]

where:

• ( FV ) is the future value of the investment.
• ( P ) is the monthly contribution.
• ( r ) is the monthly interest rate (annual interest rate divided by 12 and then divided by 100).
• ( n ) is the number of times interest is compounded per year (12 for monthly compounding).
• ( t ) is the number of years.

In your case, you want to find ( P ) and ( FV ) such that ( FV ) is at least $1,000,000 and ( t ) is 5 years with a 20% APR.

Let's set up the equation:

[ 1,000,000 = P \times \left( \frac{(1 + 0.20/12)^{12 \times 5} - 1}{0.20/12} \right) ]

Now, we can solve for ( P ):

[ P = \frac{1,000,000}{\left( \frac{(1 + 0.20/12)^{12 \times 5} - 1}{0.20/12} \right)} ]

You can use a financial calculator or a spreadsheet software like Excel to calculate this value.

Now let's calculate the monthly contribution (( P )) needed to achieve a future value of $1,000,000 in 5 years with a 20% APR compounded monthly.

[ P = \frac{1,000,000}{\left( \frac{(1 + 0.20/12)^{12 \times 5} - 1}{0.20/12} \right)} ]

Now, let's compute this:

[ P = \frac{1,000,000}{\left( \frac{(1 + 0.01666666667)^{60} - 1}{0.01666666667} \right)} ]

Calculating this expression yields:

[ P \approx \frac{1,000,000}{\left( \frac{1.01666666667^{60} - 1}{0.01666666667} \right)} ]

[ P \approx \frac{1,000,000}{\left( \frac{2.207135 - 1}{0.01666666667} \right)} ]

[ P \approx \frac{1,000,000}{\left( \frac{1.207135}{0.01666666667} \right)} ]

[ P \approx \frac{1,000,000}{72.42808} ]

[ P \approx 13,805.63 ]

So, you would need to invest approximately $13,805.63 monthly to achieve a future value of $1,000,000 in 5 years with a 20% APR compounded monthly.

Of course, much of this can be subsidized by Posting, curating, commenting, participating in HIVE Games or Dapps, holding Dividend Tokens, Participating in Liquidity Pools, Leasing HP or RC credits and many other creative ways.

So what's stopping you from becoming a MILLIONAIRE...... for FREE ?

Please note that investing always involves risks, and it's important to carefully consider your investment strategy and seek advice from financial professionals.

Posted Using InLeo Alpha