You are thinking of investing $3600 this year. You have received advice from family members ....

Question

Question

How much money will you have at the end of 30 years if you pick your cousin Lisas advice? money after 30 years: S

Answer 1

Answer #1

We use the rule Future Value = Present Value x (1 + rate)^time

Money as a result of Aunt Anne advice: 3600 x (1 + 9.45%)^10 = $8880.97

Money as a result of Uncle Rick advice: 3600 x (1 + 5.60%)^20 = $10,704.86

Money as a result of Grandpa advice: 3600 x (1 + 0.53%)^40 = $4472.64

Money as a result of Lisa advice: 3600 x (1 + 2.12%)^30 = $6,755

Answer 2

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