Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You invest $30,000 today and $4000 per year for 32 years. Assuming you earn an 8.7% rate of return, how much will you have

image text in transcribed 

You invest $30,000 today and $4000 per year for 32 years. Assuming you earn an 8.7% rate of return, how much will you have at the end of the 32nd year? How much more do you have after 40 years? Of that additional money, how much came fror your contributions and how much from investment income?

Step by Step Solution

3.51 Rating (171 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the future value of the investment after 32 years we can use the future value formula f... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money into Wealth

Authors: Arthur J. Keown

8th edition

134730364, 978-0134730363

More Books

Students also viewed these Finance questions