If I had put 50,000 dollars away today in some kind of cd or money market account, and did not touch it or the interest for 20 yrs, how much money would I have, same ? with 80,000 please help
To determine how much money you would have after 20 years in a CD or money market account, we need to consider the interest rate.
Interest rates can vary depending on various factors such as the type of account and the current market conditions. However, for the purpose of this explanation, let's assume an average interest rate of 2% per year.
To calculate the future value of your investment, we can use the compound interest formula:
Future Value = Principal Amount × (1 + Interest Rate)^Number of Years
For your first scenario with $50,000:
Future Value = $50,000 × (1 + 0.02)^20
Future Value = $50,000 × (1.02)^20
Future Value = $50,000 × 1.485946
Future Value ≈ $74,297.30
Therefore, after 20 years, with an assumed interest rate of 2% per year, your investment of $50,000 would grow to approximately $74,297.30.
For the second scenario with $80,000:
Future Value = $80,000 × (1 + 0.02)^20
Future Value = $80,000 × (1.02)^20
Future Value = $80,000 × 1.485946
Future Value ≈ $118,876.48
Therefore, after 20 years, with an assumed interest rate of 2% per year, your investment of $80,000 would grow to approximately $118,876.48.
Keep in mind that actual interest rates may differ, and it is always a good idea to check with different financial institutions to see the rates they offer. Additionally, some accounts may have restrictions or fees for early withdrawals, so it's important to consider those factors as well.