> Are you sure it's correct?
Yes, I'm sure.
> the above formula is true for if you open 2 accounts with the same interest,
> one account with an initial deposit and another one that's the regular savings
> account. this is though not equal to the other
Makes NO difference; we're looking at ONE account by breaking it
down in 2 parts.
> using this calculator i dont get the same result with the above formula...
I can't comment: I can't see what you're entering!
it doesn't matter what you enter since the formula is the same. if you enter your numbers below, the answer is not 11,011.16+12,918.53.... so they are not using your formula at least. you'll get around 123930 while their formula gives 123901
try comparing your calculations to the calculator and you'll see that the answer is different. so appearantly the financial advisors at austen morris would not agree
If you enter 8000 as initial, 1000 as monthly deposit, 96 as n,
and .04/12 as r, you WILL get same results.
8000(1 + .04/12)^96 = 11,011.16
1000[(1 + .04/12)^96 - 1] / (.04/12) = 112,918.53