Question

when you were born, your grandfather invested $2,000 for you at 12.5% intrested compounded daliy. No one told you about it until you turn 50 years old. Would you be a millionairie on the day you turned 50?

Answer 1

No, you would not be a millionaire on the day you turned 50.

Step-by-step explanation:

To determine if you would be a millionaire by the time you turn 50, we need to calculate the future value of the $2,000 investment at a 12.5% annual interest rate compounded daily.

The formula to calculate the future value of an investment with compound interest is:

FV = P * (1 + r/n)^(n*t)

Where:

• FV is the future value
• P is the principal amount
• r is the annual interest rate
• n is the number of times interest is compounded per year
• t is the number of years

Using this formula, we have:

FV = $2,000 * (1 + 0.125/365)^(365*50)

Calculating this, the future value of the $2,000 investment would be $697,828.07.

Therefore, you would not be a millionaire on the day you turned 50.