If you inherited $25,000 today and invested all of it in a security that paid a 7% rate of return, how much would you have in 25 years?

What is
25000(1.07)^25 ?

135685.81.
Is this correct?

yes

thank you.

To calculate the future value of an investment, you can use the formula for compound interest. The formula is:

Future Value = Present Value * (1 + Rate of return)^Number of years

In this case, the Present Value is $25,000, the Rate of return is 7% (which can also be expressed as 0.07), and the Number of years is 25.

Plugging in these values into the formula, we get:

Future Value = $25,000 * (1 + 0.07)^25

Now let's calculate step by step:

1. Calculate (1 + 0.07)^25: Raise (1 + 0.07) to the power of 25. This gives us approximately 3.8697.
2. Multiply $25,000 by 3.8697: $25,000 * 3.8697 = $96,742.50.

So, if you invested $25,000 at a 7% rate of return, after 25 years you would have approximately $96,742.50.

It's worth noting that this calculation assumes a constant rate of return and does not take into account any fees, taxes, or fluctuations in the market, which can affect the actual returns on an investment.