Thanks for the response Stefan. However, I can't seem to get the right answer with that formula. I may be doing something wrong.
The scenario is an investment stream where the individual invests $1800 now and $75 each month for the next 65 years (a total of 780 periods). However, the $75 periodic investment is to increase by 1% each year or 1%/12 each period.
For example,
1st period: 75.00
2nd period:75.06
3rd period:75.13
4th period:75.19
etc. for 780 periods
The annual interest rate is 8%.
According to another source and my long calculation of getting the FV of each payment individually, the future value of the cash flow stream is $2,586,855. Here are may answers attempting to use your suggestion.
FV(0.08/12,780,75,1800)*(1.01^780) = $5,432,659,433.
FV(0.08/12,780,75,1800)*(1+(0.01/12))^780 = $4,431,133
FV(0.08/12,780,75,1800)*(1.01)^65 = $4,418,046
Am I doing something wrong?
Thanks.