Question

Which of the following statements is true, assuming that no additional deposits or withdrawals are made? If you invest $5 today at 15% annual compound interest for 82.3753 years, you’ll end up with $100,000. If you invest $1 today at 15% annual compound interest for 82.3753 years, you’ll end up with $100,000.

Answer 1

Step-by-step explanation:

Let the rate of interest be x

12,800(1+x)7 = 28,296.72

X = 12%

Let it takes x years

45,000(1+0.04)x = 56,939.36

(1.04)x = 1.2631911

X = 6 years

Value of $1

= 1(1.15)82.3753 = $100,000

Value of $5 = 5(1.15)82.3753 = $500,000

Hence, the correct statement is If you invest $1 today at 15% annual compound interest for 82.3753 years, you will end up with $100,000