Earns an average annual rate of return

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Steve is considering investing $4,000 a year for 40 years. How much will this investment be worth at the end of the 40 years if he earns an average annual rate of return of 12.0 percent? Assume Steve invests his first payment of the end of this year. What would the amount be if it was compounded monthly, instead of annually?

Reference no: EM131302430

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