Question

You can make one of the following investments:

Option 1: $50 initial investment with an average annual growth rate of 9% starting at age 30
Option 2: $50 initial investment with an average annual growth rate of 8% starting at age 20
Option 3: $100 initial investment with an average annual growth rate of 7% starting at age 25 ​

Answer 1

To determine which investment option would yield the highest return, we can calculate the future value of each investment at a certain age. Let's assume we're looking at the value of each investment at age 65. Option 1: $50 initial investment with an average annual growth rate of 9% starting at age 30 Using a compound interest calculator, we can find that the future value of this investment at age 65 would be approximately $1,338. Option 2: $50 initial investment with an average annual growth rate of 8% starting at age 20 Again, using a compound interest calculator, we can find that the future value of this investment at age 65 would be approximately $1,088. Option 3: $100 initial investment with an average annual growth rate of 7% starting at age 25 Using the same calculator, we can find

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