34. At age 20, you begin depositing $50 each month into an account. Now suppose that at age 40, you finally get a job where your employer puts $400 per month into an account. You continue your $50 deposits, so from age 40 on, you have two separate accounts working for you. Assume that each account considered has an APR of 6% compounded monthly. What will be the total value of your nest egg when you retire at age 65? (total sum of two accounts)

34. At age 20, you begin depositing $50 each month into an account. Now suppose that at age 40, you finally get a job where your employer puts $400 per month into an account. You continue your $50 deposits, so from age 40 on, you have two separate accounts working for you. Assume that each account considered has an APR of 6% compounded monthly. What will be the total value of your nest egg when you retire at age 65? (total sum of two accounts)

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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Question

34. At age 20, you begin depositing $50 each month into an account. Now suppose that at
age 40, you finally get a job where your employer puts $400 per month into an account.
You continue your $50 deposits, so from age 40 on, you have two separate accounts
working for you. Assume that each account considered has an APR of 6% compounded
monthly. What will be the total value of your nest egg when you retire at age 65? (total
sum of two accounts)

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