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Business, 16.04.2020 22:52 smilingntn33p7pqpp
A newborn baby receives $2,000 on her birthday from her parents which is deposited into an account and invested in the Vanguard S&P 500 Index Fund. That is $2,000 deposited at t=0. Assume that on every subsequent birthday up to and including her 16th birthday, the baby's parents deposit an additional $1,000 into the same account and invest the money in the Vanguard S&P 500 Index Fund. That is $1,000 deposited on each of t=1 through t=16. There are no more contributions. Assume the investments in the Vanguard S&P 500 Index Fund grow at 6% every year after all taxes and expenses. Assuming simple compounding of interest, what will be the balance in the account at the baby's 65th birthday, rounded to whole dollars.
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A newborn baby receives $2,000 on her birthday from her parents which is deposited into an account a...
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