Question

What is the minimum I need to invest each year to be a millionaire? Using the...

What is the minimum I need to invest each year to be a millionaire? Using the following criteria:

-You begin working at age 22

-You retire at age 62, which give you a 40 year investment timeframe.

-You expect to get the S&P 500 historical return of 10% per year.

Multiple Choice

  • $1,528.13

  • $2,259.41

  • $7,129.80

  • $8,880.29

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Homework Answers

Answer #1
FV =                                  1,000,000.00
APR = i = 0.10
n = 1
x = 40
i/n = 0.10000
n*x 40
Ordinary = 0 or blank, Due = 1
PMT = FV = $1,000,000.00
APR = i =   0.10
n =   1
x =   40
i/n =   0.10000
n*x   40

PMT =   $2,259.41

$2259.41 is the correct answer

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