If you invest the $10,000 you receive at graduation (age 22) in a mutual fund which averages a 12% annual return, how much will you have at retirement in 40 years?

A) $909,090
B) $930,510
C) $783,879
D) $510,285

Question

samantha smith · Accepted Answer

Final Answer : B, Explanation :  Using the compound interest formula, we can calculate the amount at retirement:A = P(1 + r/n)^(nt)A = 10,000(1 + 0.12/1)^(1*40)A = 10,000(1.12)^40A = $930,510.

If you invest the $10,000 you receive at graduation (age 22) in a mutual fund which averages a 12% annual return, how much will you have at retirement in 40 years?

A) $909,090
B) $930,510
C) $783,879
D) $510,285

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Learning Objectives

Related questions

If you invest the $10,000 you receive at graduation (age 22) in a mutual fund which averages a 12% annual return, how much will you have at retirement in 40 years?A) $909,090B) $930,510C) $783,879D) $510,285

Definitions

Learning Objectives

Learning Objectives

Related questions

If you invest the $10,000 you receive at graduation (age 22) in a mutual fund which averages a 12% annual return, how much will you have at retirement in 40 years?

A) $909,090
B) $930,510
C) $783,879
D) $510,285