Hey Guys, I am financial advisor with an interesting math questions.
If I invest $100,000 and the initial yield is 3% but the income is growing at a rate of 10% per year. When does the total income over time outpace a comparable investment of $100,000 paying 7% per year growing at 1.92% annual compound growth per year?
In which year does the investment with the lower yield higher income growth rate outpace the investment with the higher yield lower income growth rate?
Thanks, Steven
If I invest $100,000 and the initial yield is 3% but the income is growing at a rate of 10% per year. When does the total income over time outpace a comparable investment of $100,000 paying 7% per year growing at 1.92% annual compound growth per year?
In which year does the investment with the lower yield higher income growth rate outpace the investment with the higher yield lower income growth rate?
Thanks, Steven