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You and your friend are both 20 years of age.   You decide to invest $200/month for 15 years in an investment earning 6% annually (compounded monthly) and then you stop making contributions.  You then let the money sit and continue to compound for another 25 years.   Your friend waits 15 years and then begins investing $350/month for the next 25 years also in an investment earning 6% annually (compounding monthly). What is the value of your friend's portfolio at age 60?     $274,574     $242,548     $259,699     $228,862

You and your friend are both 20 years of age.   You decide to invest $200/month for 15 years in an investment earning 6% annually (compounded monthly) and then you stop making contributions.  You then let the money sit and continue to compound for another 25 years.   Your friend waits 15 years and then begins investing $350/month for the next 25 years also in an investment earning 6% annually (compounding monthly). What is the value of your friend's portfolio at age 60?     $274,574     $242,548     $259,699     $228,862

Essentials Of Investments
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
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  1. You and your friend are both 20 years of age.  

    You decide to invest $200/month for 15 years in an investment earning 6% annually (compounded monthly) and then you stop making contributions.  You then let the money sit and continue to compound for another 25 years.  

    Your friend waits 15 years and then begins investing $350/month for the next 25 years also in an investment earning 6% annually (compounding monthly).

    What is the value of your friend's portfolio at age 60?

       

    $274,574
       

    $242,548
       

    $259,699
       

    $228,862
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