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
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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