Syndra was given $5,000 at birth from various family members to be invested until her adulthood. The Dow Jones has averaged an annual average growth rate of 10% for the 20th century. If Syndra invests his $5,000 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 $1000 per year of his own money, how many years will it take for Syndra to become a millionaire?
Answers:
I calculated a little over 44 years.
Year 0 = $5000
Year 1 = $5500 (Previous balance + 10%)
Year 2 = $7150 (Previous balance + $1000) + 10% of that
Year 3 = $8965 (Previous balance + $1000) + 10% of that
...
Year 44 = $982,961.14
Year 45 = $1,082,357.26
So about 2-3 months past the end of the 44th year, the balance would reach $1,000,000.
Roughly 49 years
http://personal.fidelity.com/toolbox/gro...
25 years... i used excel
The problem with good solid Dow Jones mutual fund which averages 10% growth is that past preformance does not assure future profits.In stock investing gravity should always be part of the equation.This link may have some stock investing info you can use
http://stock-investing-info.com/...
that would be 44 years and 3 months than her account would be 1,001,062$
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