I am trying to use a retirement savings/investment calculator using this: https://www.getsmarteraboutmoney.ca/calculators/compound-interest-calculator/
I chose initial investment of $1500, monthly contribution of $1500, time period = 30 years, interest rate = 5%. Now, the plan is to invest the money in an index fund that on average earns 5% and all dividends are reinvested. I believe 5% is very reasonable on S&P 500. What I have trouble with: What value should I choose for Interest is compounded? Should it be Yearly? When i choose 'Yearly', it tells me that after 30 years, I will have 1.2 million and 688k of that will be interest. This number seems quite high, is it correct?