You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 13% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. Note: Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places. (FV of $1. PV of $1. EVA of $1, and PVA of $10 Answer is complete but not entirely correct. Accumulated investment amount $ 328,988.05
You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 13% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. Note: Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places. (FV of $1. PV of $1. EVA of $1, and PVA of $10 Answer is complete but not entirely correct. Accumulated investment amount $ 328,988.05
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
Related questions
Question
1
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College