Pamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market through an index fund that averages a 7% return over this 40 year period. 5. What is the total balance in the account after 40 years? 6. How much of the total did 7. How much money did Pamela make through compounded Pamela contribute herself? returns in this investment account?

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
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Hi help me please it's econ finance class work second picture is question
wer of Compounding - fillable.pdf-Adobe Acrobat Reader DC
t View Window Help
Tools
The Power of Comp.. x
早2 a D
2 / 4
Scenario #2: Pamela
Pamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market*
through an index fund that averages a 7% return over this 40 year period.
Co
5. What is the total balance in
6. How much of the total did
or
7. How much money did Pamela
make through compounded
returns in this investment
the account after 40 years?
Pamela contribute herself?
Se
account?
Co
8. Why is Pamela's total balance so much greater than Raul's even though she contributed the same amount as
he did?
Doc
Eng
Cor
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立
Transcribed Image Text:wer of Compounding - fillable.pdf-Adobe Acrobat Reader DC t View Window Help Tools The Power of Comp.. x 早2 a D 2 / 4 Scenario #2: Pamela Pamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market* through an index fund that averages a 7% return over this 40 year period. Co 5. What is the total balance in 6. How much of the total did or 7. How much money did Pamela make through compounded returns in this investment the account after 40 years? Pamela contribute herself? Se account? Co 8. Why is Pamela's total balance so much greater than Raul's even though she contributed the same amount as he did? Doc Eng Cor O Type here to search 立
1 / 4
早2 &D
use one of these calculators to better understand the power of compounding.
Part I: The Power of Compounding
Use the compound interest calculator to answer the questions for each of the following scenarios. Here are a few things
to do when using the calculator:
The Initial Investment will be the same as the Monthly Contribution.
Set the Compound Frequency to Annually.
Round all monetary answers to the nearest whole dollar.
P Type here to search
Transcribed Image Text:1 / 4 早2 &D use one of these calculators to better understand the power of compounding. Part I: The Power of Compounding Use the compound interest calculator to answer the questions for each of the following scenarios. Here are a few things to do when using the calculator: The Initial Investment will be the same as the Monthly Contribution. Set the Compound Frequency to Annually. Round all monetary answers to the nearest whole dollar. P Type here to search
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