Exercise 5-11 (Algo) Future value; ordinary annuity (LO 5-7) You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 7% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. Note: Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places. (FV of $1, PV of $1. FVA of $1, and PVA of $1) Accumulated investment amount
Exercise 5-11 (Algo) Future value; ordinary annuity (LO 5-7) You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 7% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. Note: Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places. (FV of $1, PV of $1. FVA of $1, and PVA of $1) Accumulated investment amount
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:Exercise 5-11 (Algo) Future value; ordinary annuity (LO 5-7)
You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55, you have 30 years to
watch your investment grow. You decide to invest in the stock market, which has earned about 7% per year over the past 80 years and
is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years.
Required:
Calculate how much your accumulated investment is expected to be in 30 years.
Note: Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of
$1)
Accumulated investment amount
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