You have gotten to a point in your life where you have a budget and it works. Your cash inflows and outflows are matched to the point where your bills are getting paid, you have an emergency fund and the overall needs of your family are being met. Over a few years, you have accumulated $100,000 that is currently sitting in a savings account earning very little interest. You have determined it is time to begin a structured approach to investing and need to allocate this $100,000. You have also determined you may have $1,000 a month additional to invest.

If you can average 8% annual rate of return on the $100,000, how much would you have when you turn age sixty-five?

I am not sure how to figure this out?