Question
Suppose you plan to save $5,000 per year for the next 40 years (with your deposits occurring at the end of each year). Further assume
Suppose you plan to save $5,000 per year for the next 40 years (with your deposits occurring at the end of each year). Further assume you will earn 12% per year on your savings.
How much will you accumulate by the end of 40 years?
How much, in total, did you contribute to this account over the 40 years?
What percentage of your total accumulation is profit?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
