Question

Diego wants to have $1,000,000 in 5 years. He plans to invest $250,000 to start and make yearly payments of $125,000 to the account. He will be receiving 3.5% interest compounded monthly on his investment. Will he reach his goal?

No
Yes

Answer 1

Yes

Explanation:

With the $875,000 from his input alone he is really close to $1,000,000 and doing simple intrest on the $250,000 is $105,000 a year is he earns 3.5% intrest a month.

So in 5 years he'll have about $1,662,500 using simple intrest but with compound it'd be more like 2mil

Hope this helps!