2006-12-05 14:59:51 · 7 answers · asked by Rita G 1 in Business & Finance ➔ Personal Finance
Depends on what you invest it in. Savings account, CDs, or stock market?
2006-12-05 15:01:35 · answer #1 · answered by J 3 · 1⤊ 0⤋
If you invest a lump sum of $200,000 today you can use the "Rule of 72's" to approximate what the value of your money would be in 10 years. Basically, the "Rule of 72's" means that your money will double based on the interest rate divided into 72. For example, if you invest $200,000 at a fixed 9.00% you will double your money in 8 years (72 divided by 9 = 8). So in 8 years, your $200,000 would be worth about $400,000 if you earn a consistent 9% return on your money. In 10 years, your money would be worth about $475,000.
As for the income you earn on the money, of course it depends on the interest rate. Assuming 9% APY as in the previous example, you will have earned $18,000 in income in the first year ($200,000 x 9.00% = $18,000). On the much more conservative side, if you earn only 4.5% APY in interest your income will only be $9,000 in the first year. If the interest is retained in the account after the first year, you will be earning more interest in the following years (assuming the APY is constant).
2006-12-05 15:21:01 · answer #2 · answered by moneyman2424 1 · 1⤊ 0⤋
$200,000, if you don't eat. Actually, it would be $140,000/yr if you invested the minimum that everyone should be investing, 15% of your income ($21,000/yr).
Otherwise, you could be making less if you were investing a higher percentage. I am guessing that what you're asking is: How much would I need to earn in order to be able to invest $200,000 over the next ten years?
2006-12-05 15:04:32 · answer #3 · answered by normobrian 6 · 0⤊ 0⤋
0
Income is not an investment.
Your income is what you earned.
Your investment can make money or lose money depending on the amount of risk you are willing to take.
GOD bless.
2006-12-05 15:04:46 · answer #4 · answered by May I help You? 6 · 1⤊ 0⤋
There is no way to tell. If you buy US Treaury bonds, about $7,500 a year. If you buy common stocks, you could double your money -- or lose it.
2006-12-05 15:13:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The answer is:
Not Enough! That's always the answer.
2006-12-05 15:09:38 · answer #6 · answered by Family Guy 3 · 0⤊ 0⤋
....you won't be earning anything but interest, and one would need the interest rate to calculate anything.
2006-12-05 15:02:01 · answer #7 · answered by Anonymous · 1⤊ 0⤋