Each and every year $7,500 is invested at 4% annual compound interest.a. What is the value of the investment portfolio after 20 years? After 25years? After 30 years? b. Repeat part (a) if the investment is at 5% annual compound interest. c. Based upon your answers to (a) and (b), what conclusions can be drawn regarding the impact of the interest earned versus the duration of the investment?
Each and every year $7,500 is invested at 4% annual compound interest.a. What is the value of the investment portfolio after 20 years? After 25years? After 30 years? b. Repeat part (a) if the investment is at 5% annual compound interest. c. Based upon your answers to (a) and (b), what conclusions can be drawn regarding the impact of the interest earned versus the duration of the investment?
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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Each and every year $7,500 is invested at 4% annual
a. What is the value of the investment portfolio after 20 years? After 25
years? After 30 years? b. Repeat part (a) if the investment is at 5% annual compound interest. c. Based upon your answers to (a) and (b), what conclusions can be drawn regarding the impact of the interest earned versus the duration of the investment?
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