Question: How does compounding of returns play a role in calculating returns to an investor? Explain how you would calculate how much an investor would need

How does compounding of returns play a role in calculating returns to an investor? Explain how you would calculate how much an investor would need to save for X years if they desired Y annual returns? How would the number of years to retirement, the projected life expectancy, and the level of risk tolerance, affect your answer? How do taxable vs. non-taxable returns affect the answer?

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