IF I INVEST 6000 DOLLARS EVERY YEAR, FOR 5YRS. HOW MUCH WILL I PROFIT?

{ 6 comments }

awommack February 14, 2011 at 4:48 am

not sure

Claudia February 14, 2011 at 5:41 am

well lets do some simple math now, shall we?

Ok, so $6000 x 5 = $30,000!

kvuo February 14, 2011 at 6:23 am

depends on what youre invested in.

3eleven February 14, 2011 at 6:44 am

If you invest and make 6% per year, here is the calculation:

2006 – $6,000 X 1.06 = $6,360
2007 – $6,360+$6,000 X 1.06 = $13,102
2008 – $13,102+$6,000 X 1.06 = $20,248
2009 – $20,248 + $6,000 X 1.06 = $27,823
2010 – $27,823 + $6,000 X 1.06 = $35,852

muncie birder February 14, 2011 at 7:43 am

It all depends. There are no guarantees on investing. You in fact could loose every cent as those who invested in Enron and World Com and Global Crossing did.

The safest investment in the U S is T-bills currently paying 5+% but if you were to invest in those and the dollar were to continue falling against other currencies at the current rate of 10% annually you will in fact wind up with less than you started with.

The answer is that there is a possibility that you could wind up with nothing, maybe a 10% probability. You could wind up with less than $30,000 about a 35% probability. You could wind up with more than $30,000 about at 65% probability. You could wind up with more than $40,000 about a 25% probability. You could wind up with more than $50,000 about a 10% probability.

#girl February 14, 2011 at 7:44 am

It depends on the investment.

If you invest in an interest bearing security, the interest rate determines your profit.

If you invest in stocks, it depends on whether the stock pays dividends, whether the price over time increases or decreases.
It also depends on whether you invest in a lump sum each year or if you make your purchases throughout the year (dollar cost averaging). If the stock pays dividends, do you participate in dividend reinvestment?

If you are new to investing, go to The Motley Fool (www.fool.com). This site will help you learn the things you need to know.

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