What is the formula for calculating the amount of money I end up with in a given period (salary and compounding effect)?

I'll give a concrete example (couldn't find a similar question):

• Let's say I have an amount of money M at time t = 0 (first month).
• Every month, I get a given amount (let's say constant) of R
• On my total amount of money for each month, I get a return of P percent per month.

What is the formula to know the final amount of money after t months?

• Do you get R at the beginning of the month or at the end of the month? May 14 '15 at 16:05
• @DilipSarwate At end of the month May 14 '15 at 16:06
• So how about trying to figure out, all by yourself, the formula for how much money you will have at the end of the first month, and the formula for how much money you will have at the beginning of the second month (t=1)? May 14 '15 at 16:18
• After one month it's: (M + R)*(1+P)^1 then it's ((M + R)*(1+P)^1) * (1+P)^2. It's recursive. Don't hesitate to risk being more helpful ;) My question is for t arbitrary, not t = 1... May 14 '15 at 16:21
• Normally, formulas are here to accomodate EITHER no payment at t = 0 but payment at t = Final, OR payment at t = 0 but no payment at t = Final. Please choose one. May 14 '15 at 16:27

What's the future value of money given:

M = initial investment