Compound interest?

B

BaCkWeRdZ

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Nov 10, 2010
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My teacher was telling us that the average return on money invested in the stock market is 11% per year. He then asked us if we save $5 per day, and put it into the market, how long would it take for us to become a millionaire. I doubt it's all that long because he said we would be extremely surprised.

I think the question is: Investing $5 per day at 11% annual compound interest = $1,000,000 in x years?

I don't know the algorithm to solve this.

Thanks in advance
 
BaCkWeRdZ said:
My teacher was telling us that the average return on money invested in the stock market is 11% per year. He then asked us if we save $5 per day, and put it into the market, how long would it take for us to become a millionaire. I doubt it's all that long because he said we would be extremely surprised.

I think the question is: Investing $5 per day at 11% annual compound interest = $1,000,000 in x years?

I don't know the algorithm to solve this.

Thanks in advance
Click to expand...

Do you know how a mortgage payment is calculated?

In my opinion though - it would take a long time ~ 38 years
 
Not at all. It's not for a grade. He just told us to go home and figure it out and we will talk about it next week
 
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