There are 3 major types of saving vehicles for college. What are they? Which typ
ID: 2644909 • Letter: T
Question
There are 3 major types of saving vehicles for college. What are they? Which type do you think is best and why? Today, you have $10,000 and you want to invest it in the stock market. You know the market has averaged 10% per year for the last 90 years and you believe that you can earn 10% per year for 15 years. How much will you have at the end of 15 years? There are 3 major types of saving vehicles for college. What are they? Which type do you think is best and why? Today, you have $10,000 and you want to invest it in the stock market. You know the market has averaged 10% per year for the last 90 years and you believe that you can earn 10% per year for 15 years. How much will you have at the end of 15 years?Explanation / Answer
Amount will you have at the end of 15 years = Invested Amount*(1+Expected Rate of Return)^nper
Amount will you have at the end of 15 years = 10000*(1+10%)^15
Amount will you have at the end of 15 years = $ 41,772.48
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