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I. Answer both parts of this question. a. If you invest $1000 a year at the end of each year for the next twenty-six years
I. Answer both parts of this question. | ||||||||||
a. If you invest $1000 a year at the end of each year for the next twenty-six years in a broadly-based stock market fund which | ||||||||||
historically has earned 7% per year, how much will you expect have at the end of these 26 years if you believe stock | ||||||||||
market history is an excellent guide to the future? | ||||||||||
b. If instead you invest $1000 a year at the beginning of each year for the next twenty-six years in the same fund, how | ||||||||||
much would you have at the end of those twenty-six years? |
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