2007-03-13 02:51:12 · 4 answers · asked by Alexandra 1 in Business & Finance ➔ Investing
The formula for compound return is (1+r)^t, where r is the rate of return and t is time (years, in your case).
So, (1+.12)^13.5 = 4.6179, which means your initial investment will more than quadruple.
$290 * 4.6179 = $1,339.19 (the value after 13.5 years).
2007-03-13 03:10:10 · answer #1 · answered by drm7 3 · 0⤊ 0⤋
I don't know of any mutual fund that will let you in for so little money. Furthermore, you forget that there will be taxes. Most importantly, returns on mutual funds are NOT guaranteed--you don't have a clue as to how much that fund, or any fund, will be earning next year, much less "13.5 years". I don't know if you are being naive or silly.
2007-03-13 10:15:15 · answer #2 · answered by Rabbit 7 · 1⤊ 0⤋
$1339.19
*need to take into consideration compouding...assuming 12% compounds annually
FV = PV (1+ annual rate)^# of years
FV=$290 (1.12)^13.5
FV=$1339.19
2007-03-13 10:04:30 · answer #3 · answered by SmittyJ 3 · 0⤊ 0⤋
I got $4,384.80.
2007-03-13 11:09:14 · answer #4 · answered by MariChelita 5 · 0⤊ 1⤋