They calculate it with annually compounded rate of return. If there is no additional Annual Contributions, then:

namount*(1+yearrate)^years

? 7669.04 *(1+0.08)^10

You cannot get the same result using monthly compounded interest.


>Ok, here's my code. It is close to what I found here
>http://www.moneychimp.com/articles/finworks/fmbasinv.htm
>
>but not exact. Not sure where I'm off
>
>

>CLEAR
>
>LOCAL nAmount, nRate, nTotalPeriods, nEarning, nTotVal
>
>nAmount 	= 7669.04
>nRate 		= .08 / 12
>nPeriods		= 12 * 10  && 10 years
>
>? "Investment Amount: " + ALLTRIM(TRANSFORM(nAmount, "@R $$$,$$$,$$$.99"))
>? "Interest Rate:     " + TRANSFORM(nRate, "@R .99")
>? "Periods:            " + TRANSFORM(nPeriods)
>?
>?
>
>? "Period         Amount         Earned"
>? "-------------------------------------"
>
>FOR nPeriod = 1 TO nPeriods
>
>	nEarning = nAmount * nRate
>	nAmount = nAmount + nEarning
>
>	? PADL(nPeriod , 5, " "), TRANSFORM(nAmount, "@R $$$,$$$,$$$.99"), TRANSFORM(nEarning, "@R $$$,$$$,$$$.99")
>
>ENDFOR
>
>?
>? "Value of investment: " + ALLTRIM(TRANSFORM(nAmount, "@R $$$,$$$,$$$.99"))
>