I am trying to start saving for retirement. I am investing all my cash into the S&P 500, which will assume consistently 9.8% interest, compounded annually. I initially put a lump sum of $100 into my account, and I will deposit $10 every second week. a) After 10 years, how much money will I have invested? b) After 10 years, if I sold all of my stocks, how much money will I have in my account? c) After 25 years, how much money have I invested? d) If I had not sold my stocks at the 10 year mark and instead held onto them an additional 15 years before selling, how much additional money would I have in my account?
I am trying to start saving for retirement. I am investing all my cash into the S&P 500, which will assume consistently 9.8% interest, compounded annually. I initially put a lump sum of $100 into my account, and I will deposit $10 every second week.
a) After 10 years, how much money will I have invested?
b) After 10 years, if I sold all of my stocks, how much money will I have in my account?
c) After 25 years, how much money have I invested?
d) If I had not sold my stocks at the 10 year mark and instead held onto them an additional 15 years before selling, how much additional money would I have in my account?
a.)
The total money invested after 10 years is computed:
The formula sheet for the above computation:
b.)
The money in the account (after 10 years) is computed:
The formula sheet for the above computation:
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