The interest earned versus the duration of the investment

Assignment Help Business Economics

Reference no: EM13995897

Each year,$7,500 is invested at 4% annual compound interest a) What is the value of the investment portfolio after 20 years? After 25 years? After 30 years? b) Repeat part (a) with the investment at 5% annual compound interest c) Based answers to (a) and (b) what conclusion can be drawn regarding the impact of the interest earned versus the duration of the investment

Reference no: EM13995897

Questions Cloud

Draw a production possibilities curve for time : Draw a production possibilities curve for time. On one axis put sleep time and on the other put awake time. You have 24 hours available in a given day. Indicate the combination that describes your allocation today. Also indicate a combination that is..

Explain the purpose behind the AMT : Write a three- to four-page (12-point, double-spaced) memo to Alex Lee, explaining the following in terms that he will understand. Explain the purpose behind the AMT. Describe how and when the AMT is applicable.

The sources automatic data processing : Rate, from best to worst, each of the sources ADP (Automatic Data Processing, Inc.) indicated in the SWOT analysis in terms of its probable reliability. Discuss the steps and/or actions you can take to validate the reliability and accuracy of the inf..

Risks and benefits of expanding the disney brand in new ways : What does Disney do best to connect with its core customers? What are the risks and benefits of expanding the Disney brand in new ways?

The interest earned versus the duration of the investment : Each year,$7,500 is invested at 4% annual compound interest a) What is the value of the investment portfolio after 20 years? After 25 years? After 30 years? b) Repeat part (a) with the investment at 5% annual compound interest c) Based answers to (a)..

The cost of these ingredients per bag of concrete produced : Stroika Concrete makes bags of easy use concrete for the DIY market. The company mixes their concrete using two ingredients, "Great Grit" and "A1 Aggregate". What is the least cost combination of the ingredients that will satisfy the minimum requirem..

Each type should domar build in order to maximize profit : Domar properties plc have a site covering 20,000 meters square on which they wanted to build a mixed estate of 2- & 4-bedroom houses. The 2-bedroom houses will each occupy a plot of 60 meters square and will be sold at a profit of $15,000. On average..

What is the relevance of the marginal rule : ?Assume you are an analyst with an online university say UOP. The Admissions Director (AD) wants to determine the optimum number of students for each ECO561 class. You are provided with the following data: Tuition is $1250 per student. what is the ne..

Describes the concept of utility and economic behavior : Which of the following best describes the concept of utility and economic behavior?

User Account

All Pages