How much real purchasing power will you have in thirty years

Reference no: EM131505684

Question: The U.S. stock market has returned an average of about 9% per year since 1900. This return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year.

a. If you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

b. If you invest $5,000 per year for 20 years, how much real purchasing power will you have at the end of 30 years? The interest rate is 6% per year.

Reference no: EM131505684

Questions Cloud

What is the present equivalent of spivey lottery winnings : Spivey just won the Powerball lottery! The $20,000,000 jackpot will be paid in 20 annual installments of $1,000,000 each, with the first payment to be paid.

How much homeowner afford to spend for geothermal heat pump : A geothermal heat pump can save up to 80% of the annual heating and cooling bills of a certain home in the northeastern U.S. In this region.

Is saras conclusion a logical conclusion : Based on what you now know about statistical inference, is Sara's conclusion a logical conclusion? Why or why not?

Will york need to pay any money to the county : The Anderson County board of supervisors has agreed to fund an ambitious project that will "spend money now to save much more money in the future."

How much real purchasing power will you have in thirty years : The U.S. stock market has returned an average of about 9% per year since 1900. This return works out to a real return (i.e., adjusted for inflation).

How many cups must be recycled annually to meet the goal : Qwest Airlines has implemented a program to recycle all plastic drink cups used on their aircraft.

Calculate the ratio of sales to assets for the company : Calculate Ratio of Sales to Assets for company you chose and interpret the result in your post. In your opinion, is company performing well in this category?

The role of personality in affecting situational behavior : Describe the role of personality in affecting situational behavior.Examine the personality characteristics attributed to each theory in your approach.

What is the cost of gasoline : A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg.

User Account

All Pages