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If an investor put away $3000 at age 23 rather than age 31, how much more money would he or she have at age 63, assuming a 9 percent compound rate of return?
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If an investor put away $3000 at age 23 rather than age 31, how much more money would he or she have at age 63, assuming a 9 percent compound rate of return?

User Lehins
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1 Answer

4 votes

Answer:

FV= $94,228.26

Step-by-step explanation:

Giving the following information:

Present Value= $3,000

Interest rate= 9% compounded annually

Number of years= 63 - 23= 40 years

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 3,000*(1.09^40)

FV= $94,228.26

User Yoni Gibbs
by
4.7k points
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