Aiso Deposits $140 / Month in a Savings Account Paying

question 59

Short Answer

Aiso deposits $140 / month in a savings account paying 8% / year compounded continuously. Estimate the amount that will be in his account after 15 years.
$__________

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Definitions:

Total Return

The overall return on an investment over a specific time period, including both capital gains and dividends or interest, expressed as a percentage of the investment's initial cost.

Real Rate

The interest rate adjusted for inflation, reflecting the true return on an investment over time.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually in the form of cash payments or additional shares.

Geometric Average

A method of calculating the average rate of return that accounts for compounding by taking the nth root (where n is the count of numbers) of the product of the values.