Final answer:
To calculate how much you will have after 70 years of investing $100 per month with a 7% annual return, you can use the formula for compound interest.
Step-by-step explanation:
Compound interest is the interest calculated on the principal and the interest accumulated over the previous period. It is different from simple interest, where interest is not added to the principal while calculating the interest during the next period.
To calculate the amount you will have after 70 years, we can use the formula for compound interest. You are investing $100 per month, which means you are investing $1200 per year (100 x 12). Assuming a 7% annual return, we can calculate the future value using the formula:
Future Value = Monthly Investment x [(1 + Annual Return)^Number of Years - 1] / Annual Return
Plugging in the values, we get:
Future Value = 1200 x [(1 + 0.07)^70 - 1] / 0.07 = $2,033,906.42
So, after 70 years, you will have approximately $2,033,906.42 if you invest $100 per month with a 7% annual return.