Compound interest?

[BaCkWeRdZ]

My teacher was telling us that the average return on money invested in the stock market is 11% per year. He then asked us if we save $5 per day, and put it into the market, how long would it take for us to become a millionaire. I doubt it's all that long because he said we would be extremely surprised.

I think the question is: Investing $5 per day at 11% annual compound interest = $1,000,000 in x years?

I don't know the algorithm to solve this.

Thanks in advance

 

[Deleted member 4993]

My teacher was telling us that the average return on money invested in the stock market is 11% per year. He then asked us if we save $5 per day, and put it into the market, how long would it take for us to become a millionaire. I doubt it's all that long because he said we would be extremely surprised.

I think the question is: Investing $5 per day at 11% annual compound interest = $1,000,000 in x years?

I don't know the algorithm to solve this.

Thanks in advance

Do you know how a mortgage payment is calculated?

In my opinion though - it would take a long time ~ 38 years

 

[BaCkWeRdZ]

Not at all. It's not for a grade. He just told us to go home and figure it out and we will talk about it next week