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If your investments grew by 5% for 20 years, what total return did it feature?
If your investments grew by 5% for 20 years, what total return did it feature?
Expert Solution
Computation of Total Return or Future Value:
Future Value = Present Value*(1+Rate)^Number of Periods
Here,
We assumed Present Value = $100
Rate = 5%
Number of Periods = 20 years
Future Value = $100*(1+5%)^20 = $265.33
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