Many IRA funds argue that investors should invest at the beginning of the year rather than at the end. What is the difference to an investor who invests $2,000 per year at 11 percent over a 30-year period?

A) $43,785
B) $36,189
C) $54,244
D) There is no difference.

Question

Rodelyn Nobleza · Accepted Answer

Final Answer : A, Explanation :  Solution:FVAN 30  = $2,000(199.021) = $398,042FVAND 30  = $2,000(199.021)(1.11) = $441,827Difference = $43,785

Many IRA funds argue that investors should invest at the beginning of the year rather than at the end. What is the difference to an investor who invests $2,000 per year at 11 percent over a 30-year period?

A) $43,785
B) $36,189
C) $54,244
D) There is no difference.

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Learning Objectives

Related questions

Many IRA funds argue that investors should invest at the beginning of the year rather than at the end. What is the difference to an investor who invests $2,000 per year at 11 percent over a 30-year period?A) $43,785B) $36,189C) $54,244D) There is no difference.

Definitions

Learning Objectives

Learning Objectives

Related questions

Many IRA funds argue that investors should invest at the beginning of the year rather than at the end. What is the difference to an investor who invests $2,000 per year at 11 percent over a 30-year period?

A) $43,785
B) $36,189
C) $54,244
D) There is no difference.