Asked by
Grace Crisci
on Dec 14, 2024
Verified
Roger spends $60 per month on beer and $60 per month on cigarettes. He is going to quit smoking and cut his beer expense in half by making his own beer at the local U-Brew. At the end of every month the money he saves is going to go into an investment plan earning 12% compounded monthly. How much money should he have after 40 years?
A) $250,560
B) $443,946
C) $892,605
D) $1,058,830
E) $1,411,772
Investment Plan
A strategy developed by individuals or financial advisors to allocate assets with the goal to meet future financial goals.
Expense
Costs or charges incurred in the operation of a business or the execution of a transaction.
- Become adept at understanding and calculating the future values of investments with repeated contributions.
- Perceive the influence that interest rates along with compounding frequency have on the proliferation of investments.
- Apply the concepts of financial math to actual scenarios that include savings, investment practices, and planning for retirement.
Verified Answer
AR
Learning Objectives
- Become adept at understanding and calculating the future values of investments with repeated contributions.
- Perceive the influence that interest rates along with compounding frequency have on the proliferation of investments.
- Apply the concepts of financial math to actual scenarios that include savings, investment practices, and planning for retirement.