10. Suppose that you inherit $100,000 and invest it until you retire 40 years from now, in a fund that averages 6.5% annual earnings, which you reinvest.
How much will you have at the end of the 40 years?
Managers of investment funds usually charge a percentage each year of the amount invested (even if the investments lose money!). Suppose that the investment fund management charges you 0.25%, so you earn 6.25% instead of 6.5%. How much will you have at the end of the 40 years?