Joe has $5000 now to invest. He plans to add $1000 per year for the next 30 years with an expected average return of 8%.
a. How much will Joe have at the end of the 30 years?
b. All things held constant, what interest rate would he need to receive in order to have $200,000 in that account?
c. If his return was 9% how much would he have in his account in 30 years?
Show your work.