Calculate my total investment for 17 year MMMF if I invest #5 deposit
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First, what is an MMF? A Money Market Fund is an investment fund that pools money from many investors and invests it mainly in relatively short-term instruments such as: Treasury Bills (T-bills) Government securities Bank deposits Commercial papers and other money-market instruments So when you putRead more
First, what is an MMF?
A Money Market Fund is an investment fund that pools money from many investors and invests it mainly in relatively short-term instruments such as:
Treasury Bills (T-bills)
Government securities
Bank deposits
Commercial papers and other money-market instruments
So when you put ₦5 million into an MMF, you aren’t simply leaving ₦5 million in a normal savings account. The fund manager invests the pooled money and your investment earns returns.
2. If the 14% is compounded every year
The calculation is:
Future Value = ₦5,000,000 × (1 + 0.14)¹⁷
That gives approximately:
₦46,593,000
So:
Year Approx. value at 14%
Starting ₦5.00m
1 ₦5.70m
5 ₦9.63m
10 ₦18.53m
15 ₦35.63m
17 ₦46.59m
Your original ₦5 million would therefore grow to about ₦46.6 million after 17 years if the fund actually averaged 14% every year and all returns were reinvested.
Your approximate investment gain would be:
₦46.59m − ₦5m = ₦41.59m
But there’s an important MMF point 👇
14% is not guaranteed for 17 years.
This is where an MMF differs from a fixed 14% investment. MMF returns can change over time because the fund’s underlying investments and market interest rates change.
See lessMMf can do 17% per year and even more depending on MPR regulated interest based