1. What is the Etica Money Market Fund Wealth Calculator?

The Etica Money Market Fund Wealth Calculator estimates the future value of an investment based on compound interest. It helps investors understand how their money can grow over time in a money market fund.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( Principal \) — Initial investment amount
• \( Rate \) — Annual interest rate (in decimal form)
• \( Time \) — Investment period in years

Explanation: The formula accounts for exponential growth of money through compounding, where interest earns additional interest over time.

3. Importance of Wealth Calculation

Details: Understanding potential investment growth helps with financial planning, goal setting, and comparing different investment options.

4. Using the Calculator

Tips: Enter principal amount in currency units, interest rate as a decimal (e.g., 0.05 for 5%), and time in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often is interest compounded in this calculation?
A: This calculator assumes annual compounding. For different compounding periods, the formula would need adjustment.

Q2: Are money market fund returns guaranteed?
A: No, money market funds are not guaranteed, though they are generally considered low-risk investments.

Q3: Should taxes be considered in this calculation?
A: This calculator shows gross returns. For net returns after taxes, you would need to adjust the rate accordingly.

Q4: How accurate are these projections?
A: Projections assume a constant rate of return, which may not reflect actual market fluctuations.

Q5: Can this calculator be used for other investments?
A: While designed for money market funds, the formula applies to any investment with compound growth.