Forty years ago,you began investing $2,000 a year.Because your investments earned an average of 2 percent a year,your investment portfolio has a current dollar value of $120,804.How much did you earn on your investments over the 40-year period of time?

Question

Quizplus · Accepted Answer

The total amount invested over 40 years is $2,000 per year * 40 years = $80,000. The current value of the investment is $120,804, so the earnings on the investments are $120,804 - $80,000 = $40,804.

Forty Years Ago,you Began Investing $2,000 a Year