2. Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take $5 out of your pocket and put it in a manila

envelope (title it "Lottery Winnings"). At the end of the year, you place the money from the envelope in a stock fund with an average interest rate of 10%.

• How much will you have in the account when you retire at age 65?

. What would be different if you started this plan later in your life?

Question

Marisa

Business

3 November, 21:24

2. Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take $5 out of your pocket and put it in a manila

envelope (title it "Lottery Winnings"). At the end of the year, you place the money from the envelope in a stock fund with an average interest rate of 10%.

• How much will you have in the account when you retire at age 65?

. What would be different if you started this plan later in your life?

+1

Answers (1)

Know the Answer?

Corbin Reeves · Answer 1

Answer: At the age of 65 the money will be $90337.5

Explanation: There are 365 days in a year take $5 multiply it by 365 to get the money after one year then multiply it by 10 % to get an interest per year. Add the interest to the amount then multiply by 43 years.

Note 65years-22 years = 43 years

$5*365 = $1825

$1825*10%=$182.5

=$182.5+$1825=$2007.5/year

$2007.5*43 = $90337.5