finance

If you inherited $ 45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?

  1. 👍 0
  2. 👎 0
  3. 👁 669
  1. Compounded Annually?
    P = Po(1+r)^25 = 45,000(1+0.07)^25 =
    $244,234.47

    Simple Interest:
    P = Po + Po*r*t = 45,000 + 45000*0.07*25
    = $123,750.

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. algebra

    A total of $12,000 is invested in two funds paying 9% and 11% simple interest. If the yearly interest is $1,180, how much of the $12,000 is invested at each rate? We have two unknowns: the amount of money invested at 9% and the

  2. algebra

    Last year, Susan had 30,000 to invest. She invested some of it in an account that paid 8% simple interest per year, and she invested the rest in an account that paid 7% simple interest per year. After one year, she received a

  3. Simple Interest

    Last year, Ivan had $20,000 to invest. He invested some of it in an acount that paid 9% simple interest per year, and he invested the rest in an account that paid 7% simple interest per year. After one year, he received a total of

  4. Math

    Betsy, a recent retiree, requires $6,000 per year in extra income. She has $60,000 to invest and can invest in B-rated bonds paying 13% per year or in a certificate of deposit (CD) paying 3% per year. How much money should be

  1. Economics

    2) An example of a government transfer of funds would include 1) wages paid to the President as part of his salary. 2) Social Security paid to retired department of defense workers.*** 3) funds paid to secret service agents who

  2. Algebra

    Last year, Deon had $10,000 to invest. He invested some of it in an account that paid 6%simple interest per year, and he invested the rest in an account that paid 9% simple interest per year. After one year, he received a total of

  3. Business Managment

    Problem 11.3 -- Kelly is a 35 year old single parent with a one-year-old son. She earns $45,000 a year as a marketing analyst and has employer paid group life insurance worth twice her annual salary. She also participates in her

  4. algebra

    two investments were made totaling $15,000. for a certain year these investments yielded $1432 in simple interest. part of the $15,000 was invested at 9% and part at 10%. find the amount invested at each rate. a total of $1150 was

  1. Math

    A retired couple needs $12,000 per year in income to supplement their Social Security. They have $150,000 to invest to obtain this income. They have decided on two investment options: AA bonds yielding 10% per annum and a bank CD

  2. math

    To date, Jay Ward has xumulative earnings of $ 107,600. This week he is paid $3,000. What is the total amount of Social Security tax for this week? Assume a rate of 6.2% on $110,100 for Social Security and 1.45% for Medicare.

  3. math

    four people invested in a restaurant. one person invested $1000,000. two others invested in the ratio x:2x, and the fourth person invested an amount equal to the other three investors combined. the total investment was $1,100,000.

  4. healthcare fiancare

    HINT: 6% X $1,000,000 – {20% X ($1,000,000 – (6% X $1,000,000))} = 6% X $1,000,000 – {20% X ($1,000,000 - $60,000))}= 6% X $1,000,000 - {20% X $940,000}= 6% X $1,000,000 - $188,000 = $60,000 - $ 188,000= -$128,000 A) The

You can view more similar questions or ask a new question.