1. How much money did we invest in total? 2. How much money will we have in total at the end of all of our investing? 3. How much interest did we earn by investing in these index funds?
1. How much money did we invest in total? 2. How much money will we have in total at the end of all of our investing? 3. How much interest did we earn by investing in these index funds?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Let’s continue with some more specifics :)
Let’s pretend that at the age of twenty we start to invest in Index Funds which is pretty much “buying the entire stock market.” Think of it as a giant mutual fund.
Let’s pretend that in our twenties we invest one hundred dollars a month into an index fund that pays us 8% APR compounded monthly. Let’s pretend that we make this a habit we do it for ten years.
Then in our thirties we invest two hundred dollars a month. Let’s pretend that we make this a habit we do it for ten years.
Then in our fourties we invest three hundred dollars a month. Let’s pretend that we make this a habit we do it for ten years.
Then in our fifties we invest four hundred dollars a month. Let’s pretend that we make this a habit we do it for ten years.
And finally, in our sixties we invest five hundred dollars a month. Let’s pretend that we make this a habit we do it for ten years.
Use a Sheets or Excel document. Screenshot the appropriate support into this document and answer the questions in this document. OR use your algebra muscles as support if you would rather.
1. How much money did we invest in total?
2. How much money will we have in total at the end of all of our investing?
3. How much interest did we earn by investing in these index funds?
Transcribed Image Text:Back Finance Millionaire.docx
Let's pretend that at the age of twenty we start to invest in Index
Funds which is pretty much "buying the entire stock market."
Think of it as a giant mutual fund.
Let's pretend that in our twenties we invest one hundred dollars
a month into an index fund that pays us 8% APR compounded
monthly. Let's pretend that we make this a habit we do it for ten
years.
Then in our thirties we invest two hundred dollars a month. Let's
pretend that we make this a habit we do it for ten years.
Then in our fourties we invest three hundred dollars a month.
Let's pretend that we make this a habit we do it for ten years.
Then in our fifties we invest four hundred dollars a month. Let's
pretend that we make this a habit we do it for ten years.
And finally, in our sixties we invest five hundred dollars a
month. Let's pretend that we make this a habit we do it for ten
years.
Use a Sheets or Excel document. Screenshot the appropriate
support into this document and answer the questions in this
document. OR use your algebra muscles as support if you would
rather.
1. How much money did we invest in total?
2. How much money will we have in total at the end of all of
our investing?
3. How much interest did we earn by investing in these index
funds?
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