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olya-2409 [2.1K]
3 years ago
12

Quiz week 3 - 401(k) & investing a 6. if a person starts investing $100 per month starting at age 21, and that money earns a

7% return every year, how much will this person have when turning 70 years old? for ease of calculation, assume starting balance of $0 and annual contributions of $1,200 (12*$100).
Business
2 answers:
Ksju [112]3 years ago
7 0

To solve this problem, we use the formula:

F = A [(1 + i)^n – 1] / i

where,

F is the future value or the amount he will have

A is the amount he invest each year = 1200

n is number of years = 70 – 21= 49

i is the interest or return rate = 7% = 0.07

 

Hence the value of F is:

F = 1200 * [1.07^49 – 1] / 0.07

<span>F = $454,798.80 </span>

AlekseyPX3 years ago
4 0
This can be solved by a formula for compound interest wherein:

A = Expected amount
i = interest raten = annual depositst = timed = initial deposit amount
A = d { [(1 + i/n )nt+1 - (1 + i)] / i }A = 100 { ((1 + 0.00583)841 - (1 + 0.00583)) / 0.07 }A = 100 { (132.793 - 1.0053) / 0.07 }A = 188268 
The final amount would be 188268 dollars after he has already turned to the age of 70 if he would start investing in this investment medium when he is only 21.  
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Answera dnd Explanation:

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Which of the following has the biggest impact on consumer goods during war times?
amm1812
<h3><u>Full question:</u></h3>

Which of the following has the biggest impact on consumer goods during war times?

a. Consumers deferring purchases in hopes of a better deal

b. High interest rates

c. Low inflation

d. High inflation

<u>Answer:</u>

The biggest impact on consumer goods during war times was High inflation

<u>Explanation:</u>

Inflation raised during or as an immediate outcome of these struggles of stock markets endured dull subsequent termination of the war. The government demanded to execute price and wage restrictions in acknowledgment of inflation which had risen due to the extra inducement that was generated by government spending.

Distinctly, both using and financing continued building subsequent the war; nevertheless, the growth was beneath the course rate before the war.  Prices, influenced by the rate of inflation, commonly affect consumer spending on goods significantly.

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To know more about Expense Budget with the given link

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