I need a formula for how much money I will be receiving monthly and how much I will have in total for any time t (in months). The following is my scenario: I will be investing $900 monthly into a 3 year investment with a return of 10%. I plan to reinvest my monthly returns. For Example:
Month 1 : receive $0 input:$900 invest $900
(900*1.10 =990. 990/36 months = $27)
M2: receive: $27 input: $900 invest $927
M3: receive: $27 + $28 input: $900 invest $955
And so on... At month 36 I should have a monthly payment for months 1-36 plus my 900 to invest. At month 37 however, I will no longer receive my month 1 payments as it's 3 years will have matured and will be done. That's where it all starts to get tricky for me. I'm having trouble putting together a generic formula for this investment scheme. I have a masters in math but no business/investing experience so I'm a little lost. Ignoring inflation and the chance that some investments may fall through how much money will I be receiving monthly at time t? How much will I have in total?
Please read through before answering. Other sites I've asked this question the only response I get is to use the compound interest formula. I'm fairly certain that doesn't apply in my case. Thank you!