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melissas wealthy uncle gives her 10000 graduation gift melissa wishes save money and get e 0
Melissa’s wealthy uncle gives her $10,000 as a graduation gift. Melissa wishes to save this money and get an early start on preparing for her retirement. After analyzing several investment options, Melissa deposits the money in a stock index mutual fund. Melissa anticipates that on average the investment will earn 8% per year over the 40 years until retirement. What will be the value of Melissa’s investment if she plans on retiring in 40 years?