Question: What is the balance in an account at the end of 10 years if $2, 500 is deposited today and the account earns 4% interest, compounded annually? quarterly?
How much interest on interest is earned in an account by the end of 5 years if $100,000 is deposited and interest is 4% per year, compounded continuously?
Suppose you want to have $0.5 million saved by the time you reach age 30 and suppose that you are 20 years old today. If you can earn 5% on your funds, how much would you have to invest today to reach your goal?