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Amount invested today 238,000 Annual rate of return 8.3% Years until maturity 21 You are thinking about retirement, and would like to compute how much
Amount invested today | 238,000 | |||||
Annual rate of return | 8.3% | |||||
Years until maturity | 21 | |||||
You are thinking about retirement, and would like | ||||||
to compute how much you will have some time in | ||||||
the future. | ||||||
Using the data from above, please compute future | ||||||
amounts, and then answer these questions: | ||||||
#1 How much MORE will you have if compounding is | ||||||
monthly rather than annually? | ||||||
#2 How much MORE will you have if compounding is | ||||||
daily rather than monthly? | ||||||
A Between 4,000 and 10,000 | ||||||
B Between 10,000 and 12,000 | ||||||
C Between 12,000 and 14,000 | ||||||
D Between 14,000 and 20,000 |
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