You plan to buy a real estate property. You have $838 to invest and aim to have $2983.16. You plan on investing in a cryptocurrency ETF that you think will have a return of 30.6%. How long until you reach your goal? Include up to 2 decimal places.
You plan to buy a real estate property. You have $838 to invest and aim to have $2983.16. You plan on investing in a cryptocurrency ETF that you think will have a return of 30.6%. How long until you reach your goal? Include up to 2 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
You plan to buy a real estate property. You have $838 to invest and aim to have $2983.16. You plan on investing in a cryptocurrency ETF that you think will have a return of 30.6%. How long until you reach your goal?
Include up to 2 decimal places.
Answer:
Expert Solution
Step 1: Introduction:
The theory of compounding facilitates in ascertaining the Future value (FV) of today's money. It is similar to the concept of compound interest which follows that re-investment of the principal amount along with the interest earned during the previous year at the certain rate of interest. The total amount (principal+interest) at the end of current year will be the principal amount for the next year.
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