3. Which of the following choices will re- sult in a greater future value at age sixty-five? Choice 1 is to invest $3,000 per year from ages twenty through twenty-six (a total of seven invest- ments) into an account and then leave it untouched until you are sixty-five years old, which is another forty years. Choice 2 is to begin at age twenty- seven and make $3,000 deposits into an investment account every year until you are sixty-five years old (a total of thirty-nine investments). Each account earns an average of 10% per year.
3. Which of the following choices will re- sult in a greater future value at age sixty-five? Choice 1 is to invest $3,000 per year from ages twenty through twenty-six (a total of seven invest- ments) into an account and then leave it untouched until you are sixty-five years old, which is another forty years. Choice 2 is to begin at age twenty- seven and make $3,000 deposits into an investment account every year until you are sixty-five years old (a total of thirty-nine investments). Each account earns an average of 10% per year.
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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Transcribed Image Text:3. Which of the following choices will re-
sult in a greater future value at age
sixty-five? Choice 1 is to invest $3,000
per year from ages twenty through
twenty-six (a total of seven invest-
ments) into an account and then leave
it untouched until you are sixty-five
years old, which is another forty years.
Choice 2 is to begin at age twenty-
seven and make $3,000 deposits into
an investment account every year until
you are sixty-five years old (a total of
thirty-nine investments). Each account
earns an average of 10% per year.
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