Despite his relative youth, Samuel Hunter has started planning for his retirement. At present, he has $6,100 he can invest, and he believes that he will be able to invest that amount each year for the next 39 years-40 contributions in total. Round answers to the nearest whole number. a. If his investment earns 4% per year for the 40 years, how much will Samuel have accumulated at the end of 40 years? $ 602,842 b. If Samuel delays investing for 10 years, how will that affect the balance accumulated at the end of 40 years? $ 355,803 c. If Samuel begins investing now and finds an investment earning 5% per year for 40 years, how much more will he have accumulated than if he earns 4% ? $ 105,496 X
Despite his relative youth, Samuel Hunter has started planning for his retirement. At present, he has $6,100 he can invest, and he believes that he will be able to invest that amount each year for the next 39 years-40 contributions in total. Round answers to the nearest whole number. a. If his investment earns 4% per year for the 40 years, how much will Samuel have accumulated at the end of 40 years? $ 602,842 b. If Samuel delays investing for 10 years, how will that affect the balance accumulated at the end of 40 years? $ 355,803 c. If Samuel begins investing now and finds an investment earning 5% per year for 40 years, how much more will he have accumulated than if he earns 4% ? $ 105,496 X
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Despite his relative youth, Samuel Hunter has started planning for his retirement. At present, he has $6,100 he can invest, and he believes that he will be able to invest that amount each
year for the next 39 years-40 contributions in total.
Round answers to the nearest whole number.
a. If his investment earns 4% per year for the 40 years, how much will Samuel have accumulated at the end of 40 years?
$ 602,842
b. If Samuel delays investing for 10 years, how will that affect the balance accumulated at the end of 40 years?
$ 355,803
c. If Samuel begins investing now and finds an investment earning 5% per year for 40 years, how much more will he have accumulated than if he earns 4%?
$ 105,496
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