Use the graph below to answer the following questions. What is the approximate final value of $10,000 invested for 40 years at 8% APR compounded annually? How many times larger is the final value of $10,000 invested for 50 years at 8% APR compounded annually versus 5% APR compounded annually?
Use the graph below to answer the following questions. What is the approximate final value of $10,000 invested for 40 years at 8% APR compounded annually? How many times larger is the final value of $10,000 invested for 50 years at 8% APR compounded annually versus 5% APR compounded annually?
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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Use the graph below to answer the following questions.
- What is the approximate final value of $10,000 invested for 40 years at 8% APR compounded annually?
- How many times larger is the final value of $10,000 invested for 50 years at 8% APR compounded annually versus 5% APR compounded annually?
Transcribed Image Text:500,000
$475,000
450,000
400,000
350,000
300,000
$10,000 invested
250,000
at 8% APR
200,000
150,000
- $115,000
100,000
50,000
$10,000 invested
at 5% APR
10
20
30
40
50
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