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THE SCENARIO
One of the most common problems people have when working with a financial calculator is in entering the wrong number for N. N means 'number of periods', but some people hear that as 'number of months' and some as 'number of years'. Sadly, both are incorrect, as periods can take up any amount of time (though months and years are the most common period-lengths I've seen used).
Let's see the results of this type of misunderstanding in action, using the same initial deposit amount and monthly contribution to an investment account, but changing the length of time that elapses.
The question: If I initially put $10,000 in an investment account that earns 6.5% interest,...
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