How much you'd save for retirement by investing student loan payments - Business Insider

, and the average monthly student-loan payment for graduates is $393. That's a decent chunk of money that could otherwise be invested for short-term goals, like buying a house, or long-term goals, such as retirement.have student-loan debt and could instead invest it in a retirement account every month?Let's say that you began the investing process at age 22, when most graduate college.

Investing $393 monthly for 10 years with a 6% annual return rate, beginning at age 22, and letting the interest accrue from age 32 to 65, should give you $466,000 in retirement savings.to update the monthly balance in our retirement account:Since we're making monthly deposits of $393, we'll also assume that our interest compounds monthly as well.

For our purposes, the present value in the formula is the previous month's balance. The yield is the interest rate, or rate of return you get per year — as noted above, we put this at a typical return rate of 6%. Since we are updating our balance each month, we divide that yield by 12 to get a monthly rate of return. N is the number of years your money compounds. We're also adding the $393 deposited every month to our new monthly balance.

It’s called a loan with a signed contract.

Or how much weed you could buy?

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