U.S. Stock Market Assignment | Homework For You
February 21st, 2020
The U.S. stock market has returned an average of about
11% per year since 1900. This return works out to a real return (i.e., adjusted for inflation) of approximately 88% per year.
a. If you invest $85,500 and you earn 88% a year on it, how much real purchasing power will you have in 30 years?
b. If you invest $4,500 per year for 19 years, how much real purchasing power will you have at the end of 30 years? The interest rate is 88% per year. Get Economics homework help today