What is the ROI of RM 1,000 invested every month at 5.75% for 60 consecutive months?

Assuming:

• You invest RM1,000 at the end of each month (an ordinary annuity).
• The 5.75% is an annual return, compounded monthly.
• You invest for 60 consecutive months (5 years).

$FV = PMT\frac{(1+r)^n-1}{r}$

Where:

• Monthly investment (PMT) = RM1,000
• Monthly interest rate = 5.75% ÷ 12 = 0.47917% = 0.0047917
• Number of months (n) = 60

Using the formula:

$$FV = 1000 \times \frac{(1+0.0047917)^{60}-1}{0.0047917}$$

Results

• Total amount invested: RM60,000
• Future value after 60 months: ≈ RM69,985
• Investment gain (profit): ≈ RM9,985

• Return on investment (ROI):

  $$\frac{69,985 - 60,000}{60,000} \times 100\% \approx 16.6\%$$

Summary

Item	Amount
Monthly investment	RM1,000
Investment period	60 months
Annual return	5.75%
Total invested	RM60,000
Final value	≈ RM69,985
Total profit	≈ RM9,985
ROI	≈ 16.6%