You have signed up for your 401k and will deposit $1,200 into your 401k when you are paid at the end of each month. If you earn a compound annual rate of return of 11%, how much will you have in 25 years? Question 1 options: $1,962,778 $1,600,091 $1,866,772 $1,902,330 $1,891,360
You have signed up for your 401k and will deposit $1,200 into your 401k when you are paid at the end of each month. If you earn a compound annual rate of return of 11%, how much will you have in 25 years? Question 1 options: $1,962,778 $1,600,091 $1,866,772 $1,902,330 $1,891,360
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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Question
You have signed up for your 401k and will deposit $1,200 into your 401k when you are paid at the end of each month. If you earn a compound annual rate of return of 11%, how much will you have in 25 years?
Question 1 options:
|
|
$1,962,778
|
|
|
$1,600,091
|
|
|
$1,866,772
|
|
|
$1,902,330
|
|
|
$1,891,360
|
Expert Solution
Concept:
Future value (FV) is the value of an investment or cash flow at a specific point in the future, based on a specified interest rate or rate of return. It represents the total amount of money that an investment will grow to over time, assuming that all cash flows are reinvested at the same rate of return.
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