Ito learned something very valuable as a teenager from his dad. He was told to invest $1,000 at 12% interest at age 20 and leave it alone until age 65. Ito's dad knew that one strategy that wealthy people use is to exercise self-discipline to never touch this long-term plan. Ito is very happy he applied his dad's advice. 7. Approximately how long will it take Ito's savings to grow into $2,000? A) 60 months B) 5 years C) 8.5 years D) 6 years 8. If he sticks to this plan, Ito's savings will have grown to approximately. A) $116,723 B) $163,987 C) $9,646 D) $1,125,945 9. If Ito were to leave his money in the account until he was 68, by approximately what amount would the balance increase between his 62nd and 68th years? A) $113,667 B) $1,096,471 C) $160,457 D) $1,973 by age 62. 10. If his savings account had earned a more conservative 9% annual rate of return, Ito's savings would be approximately A) $4,132 less by age 68. B) $62,585 C) $167,805
Ito learned something very valuable as a teenager from his dad. He was told to invest $1,000 at 12% interest at age 20 and leave it alone until age 65. Ito's dad knew that one strategy that wealthy people use is to exercise self-discipline to never touch this long-term plan. Ito is very happy he applied his dad's advice. 7. Approximately how long will it take Ito's savings to grow into $2,000? A) 60 months B) 5 years C) 8.5 years D) 6 years 8. If he sticks to this plan, Ito's savings will have grown to approximately. A) $116,723 B) $163,987 C) $9,646 D) $1,125,945 9. If Ito were to leave his money in the account until he was 68, by approximately what amount would the balance increase between his 62nd and 68th years? A) $113,667 B) $1,096,471 C) $160,457 D) $1,973 by age 62. 10. If his savings account had earned a more conservative 9% annual rate of return, Ito's savings would be approximately A) $4,132 less by age 68. B) $62,585 C) $167,805
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:For nos. 7 to 10
Ito Rapadas
Ito learned something very valuable as a teenager from his dad. He was told to invest $1,000 at 12% interest at
age 20 and leave it alone until age 65. Ito's dad knew that one strategy that wealthy people use is to exercise
self-discipline to never touch this long-term plan. Ito is very happy he applied his dad's advice.
7. Approximately how long will it take Ito's savings to grow into $2,000?
A) 60 months
B) 5 years
C) 8.5 years
D) 6 years
8. If he sticks to this plan, Ito's savings will have grown to approximately
A) $116,723
B) $163,987
C) $9,646
D) $1,125,945
9. If Ito were to leave his money in the account until he was 68, by approximately what amount would the
balance increase between his 62nd and 68th years?
A) $113,667
B) $1,096,471
C) $160,457
D) $1,973
by age 62.
10. If his savings account had earned a more conservative 9% annual rate of return, Ito's savings would be
approximately
less by age 68.
A) $4,132
B) $62,585
C) $167,805
D)
$1,871,663
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