You decide to set aside $120 a month for your future. Assuming an interest rate of 6.35%, how much will you have after 25 years? How much more would you have if you invested for 30 years?

After 20 years you will have "$87,784.99" and after 30 years you will have "$41,151.55".

Explanation:

The give values are:

After 25 years,

Cash Flow per period,

C = $120

Interest rate per period,

i =

=

Number of period,

n =

  =

The future value will be:

=  

On substituting the given values, we get

=  

=  

=   ($)

After 30 years,

Cash Flow per period,

C = $120

Interest rate per period,

i =

=

Number of period,

n =

  =

The future value will be:

=  

On substituting the given values, we get

=  

=  

=  

=   ($)

Thus

You will have:

=

= ($)

answer; the correct answer is (direct foreign investment);