Twenty years ago, you began investing $3,000 a year. Because your investments earned an average of 8 percent a year, your invest

Question

3 years ago

9

Twenty years ago, you began investing $3,000 a year. Because your investments earned an average of 8 percent a year, your invest

ment portfolio has a current dollar value of $92,000. How much did you earn on your investments over the 20-year period of time? a.) $40,000
b.) $132,000
c.) $92,000
d.) $52,000
e.) $2,000

Mathematics

1 answer:

Ulleksa [173] · Answer 1 · 2022-08-25T09:41:07+03:00

Answer:

$32,000

Step-by-step explanation:

Yearly investment = $3,000

Number of years = 20

Investments earned an average of 8 percent a year.

Total invested amount = $3,000 × 20 = $60,000

Current value of investment = $92,000.

We need to find the total earnings on the investment.

Earnings = Current value of investment - Total invested amount

Earnings = $92,000 - $60,000

Earnings = $32,000

Therefore, the total earnings is $32,000.