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

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

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Over your 40-year working career, you are planning to be diligent in planning for retirement. You...
Over your 40-year working career, you are planning to be diligent in planning for retirement. You estimate that you will start working at age 25, retire at 65, and need $100,000/year to live on in retirement for 25 additional years (until age 90). 8a) Assuming a TVOM of 8%, what do you need to uniformly annually invest to meet this goal over 40 years? 8b) What about if you wait 20 years and start investment at age 45? How much...
I don't really need the answer since I have the answer. I just need to know...
I don't really need the answer since I have the answer. I just need to know how to solve them, like what buttons to click on the financial calculator. Please go based on the answer I have provided. Don't use r or c to explain. Only explain using n, i, pv, fv, pmt. 1.)You are 40 years old today and want to plan for retirement at age 65. You want to set aside an equal amount every year from now...
You want to have $100,000 to pay for one year of living expenses after you retire....
You want to have $100,000 to pay for one year of living expenses after you retire. You already have some money saved up, so you won’t need this money until long after you retire. You plan to have it invested for 50 years. However, you don’t know how much risk you’re willing to take on the investment. You are debating between two investments: Investment 1: An S&P 500 index fund, which has averaged 8.6% annual return since World War II...
You are currently 24. Based on your calculations, you will need $120,000 of income each year...
You are currently 24. Based on your calculations, you will need $120,000 of income each year once you retire. You plan on retiring at age 65, and want to have enough money in your account so that you can draw payments out for 25 years (with the first payment taking place immediately upon your 65th birthday). Assume that all your funds earn an 11% annual return. You will begin making payments into your retirement account immediately and will make 41...
Show all your work (use of formula, etc.) in solving the problems. You still need to...
Show all your work (use of formula, etc.) in solving the problems. You still need to show your work even if you use the financial calculator to get the answers.    2. You are planning to save for retirement over the next 40 years. To do this, you will invest $900 per month in a stock account and $500 per month in a bond account. The return of the stock account is expected to be 8 percent per year (compounded...
4. How much do I need to retire? Here are your assumptions. You are 30. You...
4. How much do I need to retire? Here are your assumptions. You are 30. You will retire when you are 65. You want $40,000 a year when you retire. You will be an aggressive investor today and have an average market return of 9%. When you retire, you will be conservative in your investing and get into bonds that have a market return of 4.5%. You expect that inflation will be 3%. You currently have $20,000 in savings as...
You are 20 years old and you want to have $1,500,000 by the time you are...
You are 20 years old and you want to have $1,500,000 by the time you are 62 years old.  You believe by putting money in the stock market you can earn 7.8% return.  How much should you put in each year to reach this goal? At age 65 you will receive an annuity of $1,200 a month, and you expect to live until 85.  If you are 28 years old today, how much is that Annuity worth today?  At a...
3) Now you will plan for your retirement. To do this we need to first determine...
3) Now you will plan for your retirement. To do this we need to first determine a couple of values. a. How much will you invest each year? $1,000 a year is what i will invest. State what you will use for P, r, and n to earn credit. ( The typical example of a retirement investment is an I.R.A., an Individual Retirement Account, although other options are available. However, for this example, we will assume that you are investing...
Please give me solution and pick from multiple choice Which of the following statement is not...
Please give me solution and pick from multiple choice Which of the following statement is not correct? a. Based on the IRR rule, an investment is acceptable if the IRR exceeds the required return. It should be rejected otherwise. b. Present value index is the present value of an investment’s future cash flows divided by its initial cost. c. Payback period is the amount of time required for an investment to generate cash flows that recover its net present value....
1. If you were able to put together a portfolio that completely eliminated all risk, what return would you expect to earn and why?
1. If you were able to put together a portfolio that completely eliminated all risk, what return would you expect to earn and why?This question is a real eye opener, in that with great risk can come great reward. The asset classes I can think of to present to me a zero-risk situation in the portfolio would be the following: Savings account, CD certificate, bonds, treasuries, and ponds. I expect to get minimal and low return on investment. Obviously the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • A manufacturing company regularly conducts quality control checks at specified periods on the products it manufactures.​...
    asked 3 minutes ago
  • A cameraman on a pickup truck is traveling westward at 19 km/h while he videotapes a...
    asked 5 minutes ago
  • Records over the past year show that 1 out of 380 loans made by Mammon Bank...
    asked 8 minutes ago
  • Homework 7 The following are well-known car brands: Hyundai, Ferrari. Maserati, Mitsubishi, Subaru, Chrysler, Nissan, Jaguar,...
    asked 15 minutes ago
  • The appraised values of three recently sold houses in the Columbus area are (in thousands of...
    asked 18 minutes ago
  • A professor would like to conduct a regression analysis to determine whether a student’s final exam...
    asked 18 minutes ago
  • What are the semantic differences between a for loop and a while loop? Can you convert...
    asked 20 minutes ago
  • Confidence Interval for μ: You poll 25 students and record each student’s height. You find that...
    asked 23 minutes ago
  • A very long, straight solenoid with a cross-sectional area of 1.91 cm2cm2 is wound with 93.2...
    asked 23 minutes ago
  • Towards the end of the chapter (The Culture Code by Daniel Coyle), Coyle addresses “Collective Intelligence”...
    asked 31 minutes ago
  • Illustrate the use of (a) capacitive and (b) inductive sensors in a circuit where they are...
    asked 38 minutes ago
  • Lifetimes of AAA batteries are approximately normally distributed. A manufacturer wants to estimate the standard deviation...
    asked 40 minutes ago