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The U.S. stock market has returned an average of about 10% per year since 1900. This return works out to a real return (i.e.,
The U.S. stock market has returned an average of about 10% per year since 1900. This return works out to a real return (i.e., adjusted for inflation) of approximately 7% per year. a. If you invest $68,000 and you earn 7% a year on it, how much real purchasing power will you have in 35 years? b. If you invest $4,000 per year for 17 years, how much real purchasing power will you have at the end of 35 years? The interest rate is 7% per year. Question content area bottom Part 1 a. The real purchasing power amount in 35 years is $ enter your response here. (Round to the nearest dollar.)
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