Question

Twenty years ago, you began investing $250 a month. because your investments earned an average of 8 percent a year, your investment portfolio has a current dollar value of $145,000. how much did you earn on your investments over the 20-year period of time?

Answer 1

You invest $250/mo. over 12 months that equals $3,000 invested per year.
$250*12=$3,000/per year invested
$3,000 per year for 20 years equals $60,000 invested.
$3,000*20=$60,000 invested
8% of $60,000 is $4,800/per year.
0.08*$60,000=$4,800
$4,800 per year for 20 years equals $96,000 dollars earned on investments over 20 years.

Answer 2

Answer:

earning on investment in 20 year is  $67,240

Explanation:

Given data:

monthly investment is $250

interest rate is 8%

if monthly investment is 250 then yearly will be =  12× 250 =$3000

interest amount on yearly will  be  = 3000 × 0.08 = 240

so total amount will be in on year is = $3240

so total investment in 20 year is  = 3240 × 20 = $77,760

current dollar value is $145,000

earning on investment in 20 year is =  145,000 - 77,760 = $67,240