I get a job bagging groceries at the age of 16. In my rst summer of...

I get a job bagging groceries at the age of 16. In my rst summer of bagging groceries I save $500.

I invest this money into a exchange traded fund that follows the S&P 500. The S&P 500 has an

annual growth rate of about 10%. In other words, my investment value increases at a rate of 10%

per year. Using the rule of 70 to nd the doubling time, calculate the approximate amount of time

it will take for this investment to exceed $1,000,000 in value.

Using the same scenario above, calculate the approximate amount of time it will take for the invest-

ment to exceed $1,000,000 in value, if I instead invested $1,000.

Expert Solution

The answer is as follows:

jeff jeffy answered 3 years ago

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