Question

You want to save for retirement. Assuming you are now 20 years old and you want to retire at age 60 , you have 40 years to watch your investment grow. You decide to invest in the stock market, which has earned about 11% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 today. Required: How much do you expect to have in 40 years?

Answer 1

Final Value= $90,080

Step-by-step explanation:

Giving the following information:

You decide to invest in the stock market, which has earned about 11% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 a day for 40 years.

We need to use the following formula:

FV= PV*(1+i)^n

FV= 2000*(1.11)^40= $90,080