Question
Pamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market through an
Pamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market through an index fund that averages a 7% return over this 40 years period.
1. What is the total balance in the account after 40 years?
2. How much of the total did Pamela contribute herself?
3. How much money did Pamela make through compounded return in this investment account?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
