2.5.If you deposit $10 in an account that pays 5% interest, compounded annually, howmuch will you have at the end of 10 years? 50 years? 100 years?Suppose you want to have $0.5 million saved by the time you reach age 30 and supposethat you are 20 years old today. If you can earn 5% on your funds, how much would youhave to invest today to reach your goal.

"Since you have asked multiple questions, we will solve the first question for you. If you want any…

Answered: 2. If you deposit $10 in an account…

2. If you deposit $10 in an account that pays 5% interest, compounded annually, how much will you have at the end of 10 years? 50 years? 100 years?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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2.
5.
If you deposit $10 in an account that pays 5% interest, compounded annually, how
much will you have at the end of 10 years? 50 years? 100 years?
Suppose you want to have $0.5 million saved by the time you reach age 30 and suppose
that you are 20 years old today. If you can earn 5% on your funds, how much would you
have to invest today to reach your goal.

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