If a person starts investing $100 per month starting at age 21, and that money earns a 7% return every year, how much will this person have when turning 70 years old? for ease of calculation, assume starting balance of $0 and annual contributions of $1,200 (12*$100).

Answers

Answer 1
The future worth of money with the investment made every year can be calculated through the equation,
            F = A x ((1 + r)^n - 1/ (r))
Substituting the known values,
            F = ($1200) x ((1 + 0.07)^49 - 1) / (0.07))
                  F =  $454,798.8 

Hence, the future worth of the made contribution is $454,798.8. 
Answer 2

The person will have $454,798 when he will be 70 years old.

Further Explanation:

Future Value: Future value is the value of a product in the coming future. it is the value of the goods that would be realized after the sales of the goods in the future. It is calculated by using the future value annuity factor. Future value is used for the selection of the project. The value of the project can be accurately ascertained by determining the future value of the product because the product would be sold in the future at the future value.

[tex]\begin{aligned}\text{FV of the annuity}&=\text{P}\left(\dfrac{(1+r)^{n}-1}{r}\right)\\\text{P}&=\text{Periodic Payment}\\r&=\text{rate per period}\\n&=\text{number of periods}\end{aligned}[/tex]

Calculate the Future Value:

[tex]\begin{aligned}\text{FV of the annuity}&=\text{P}\left(\dfrac{(1+r)^{n}-1}{r}\right)\\&=\$1,200\left(\dfrac{(1+0.07)^{49}-1}{0.07}\right)\\&=\$1,200\times 378.99\\&=\$454,798\end{aligned}[/tex]

Therefore, the person will have $454,798 when he will be 70 years old.

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Answer details:

Grade: High School

Subject: Time Value of money

Chapter: Financial Management

Keywords: If, a person, starts, investing, $100, per, month, starting, at age 21, and, that, money, earns, a 7%, return, every, year, how, much, will, this, person, have, when, turning, 70, years, old,  for, ease, of, calculation, annual, contributions, of present value.


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have a good day
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Explanation:

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Final answer:

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Explanation:

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Explanation:

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Explanation:

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I believe that William's deductible is only for damage to his car and that he won't have to pay out of pocket for the other car but will have to pay higher premiums in the future due to his being at fault in the accident at least that is what happened to me recently and it worked out that way according to the automobile insurance in British Columbia, Canada.

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Answers

blend its activities into the social fabric of whatever country it conducts business in,include social networking and society events that bring in prominent members of the community,conduct its activities with the aim of achieving social, environmental, and economic development, behave in whatever manner is necessary to earn the highest profit for owners , be flexible with its ethics in the workplace in order to maintain profitability

Corporate social responsibility is defined as a company's obligation to act ethically and be accountable for its impact on society. CSR includes economic, social, and environmental responsibilities and can manifest through various initiatives such as philanthropy, fair labor practices, and environmental sustainability. It is a company's broader ethical role in society and is often in response to consumer and societal demands for responsible action.

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Cognitive dissonance theory states that there is tendency for individuals to seek constituency  among their cognition. This theory believes that when there is inconsistency in behavior or attitude something must happen to eliminate them.
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