Question 4. I am trying to start saving for retirement. I am investing all my cash...

 

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Question 4. I am trying to start saving for retirement. I am investing all my cash into the S&P 500, which we will assume consistently makes 9.8% interest, compounded annually (this is the average return over the past 90 years!). I initially put a lump sum of $100 into my account, and I will depost $10 every second week. (a) After 10 years, how much money will I have invested (i.e. how much money have I spent')? [1] (b) After 10 years, if I sold all of my stocks, how much money will I have in my account? [2] (c) After 25 years, how much money have I invested (again, 'spent')? [1] (d) If I had not sold my stocks at the 10 year mark and instead held onto them an additional [2] 15 years before selling, how much additional money would I have in my account? Question 4. I am trying to start saving for retirement. I am investing all my cash into the S&P 500, which we will assume consistently makes 9.8% interest, compounded annually (this is the average return over the past 90 years!). I initially put a lump sum of $100 into my account, and I will depost $10 every second week. (a) After 10 years, how much money will I have invested (i.e. how much money have I spent')? [1] (b) After 10 years, if I sold all of my stocks, how much money will I have in my account? [2] (c) After 25 years, how much money have I invested (again, 'spent')? [1] (d) If I had not sold my stocks at the 10 year mark and instead held onto them an additional [2] 15 years before selling, how much additional money would I have in my account?

Answer rating: 100% (QA)

Heres a breakdown of the calculations for each scenario Assumptions Initial lump sum 100 Weekly deposit 10 Investment frequency Every 2 weeks 52 weeks... View the full answer