document.write( "Question 170114: Tom, a graduate student, is considering investing $500 now, when he is 23, or waiting until he is 40 to invest $500. How much more money will he have at the age of 65 if he invests now given that he can earn 5% interest compounded quarterly? \n" ); document.write( "

Algebra.Com's Answer #125854 by jojo14344(1513) $\"\"$ $\"About$

You can put this solution on YOUR website!

\n" ); document.write( "Working eqn -----> $\"F=P%281%2B%28i%2Fm%29%29%5E%28mn%29\"$
\n" ); document.write( "Where---> $\"system%28F=FutureValue%2CP=Principal%2Ci=interest%2Cn=years%2Cm=CompundedPerYear%29\"$
\n" ); document.write( "*Note: $\"n=65-23=42yrs\"$
\n" ); document.write( "Then,Investing now @ 23 years old:
\n" ); document.write( " $\"F=500%281%2B%280.05%2F4%29%29%5E%284%2A42%29\"$
\n" ); document.write( " $\"F=500%281.0125%29%5E168\"$
\n" ); document.write( " $\"F=500%288.0605626%29\"$
\n" ); document.write( " $\"F=4030.28\"$
\n" ); document.write( "Investing @ 40 years old:
\n" ); document.write( " $\"n=65-40=25years\"$
\n" ); document.write( " $\"F=500%281%2B%280.05%2F4%29%29%5E%284%2A25%29\"$
\n" ); document.write( " $\"F=500%281.0125%5E100%29\"$
\n" ); document.write( " $\"F=500%283.4634043%29\"$
\n" ); document.write( " $\"F=1731.70\"$
\n" ); document.write( "Therefore, amount of money he will have more then ---> $\"4030.28-1731.7=highlight%282298.58%29\"$ , Answer
\n" ); document.write( ".
\n" ); document.write( "Thank you,
\n" ); document.write( "Jojo \n" ); document.write( "

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