Question
Your great uncle died and left you $125,000. Assuming you can get a constant rate of return of 5%, how much will you have when
Your great uncle died and left you $125,000. Assuming you can get a constant rate of return of 5%, how much will you have when you want to retire in 45 years if interest is compounded monthly?
How much of the interest is due to interest on interest (or due to compounding)
Step by Step Solution
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Step: 1
To calculate the future value of the 125000 investment after 45 years we can use the compou...
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
