Mark was given $10,000 at birth to invest until his adulthood. The DoW Jones has averaged an annual average of 10% for the 20th century. If Mark invests his 10,000 in a good solid dow jones mutual fund which averages 10% growth per year, and then after the first year and every year thereafter adds $1,000 per year of his own money,how many years will it take for Mark to became a millionaire.(show the working)
2007-07-16 01:33:28 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
can someone just tell me a formula or link where i can find it
2007-07-16 01:56:32 · update #1
can someone just tell me a formula or link where i can find it
2007-07-16 01:56:35 · update #2
Ok, here is a link for you:
2007-07-16 03:50:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
39.6 years to become a millionaire. Doing it without the addition of the extra annual $1000 capital takes an additional 6.65 years.
2007-07-16 12:05:52 · answer #2 · answered by JSan521704 3 · 0⤊ 0⤋
10,000 * .1 * 1950 (assumed to be Mark's birth year) - (10,000 *.02) (which is the brokerage's cut) /2 (which happens when Mark gets divorced, and his ex-wive takes half of everything he has) * .33 (because the federal government wants to tax Mark's money) = it's time for you to open the text book and learn to do your own homework.
2007-07-16 08:41:36 · answer #3 · answered by Ralfcoder 7 · 1⤊ 1⤋