1. Marcus would like to save up $3 million for his retirement. He has chosen a stock index fund that has an average APR of 7.2%. He plans to draw on the funds at 70 years old which gives him 40 years to save. (a) How much should Marcus save monthly to meet his retirement goal?(b) How much of the future value of $3 million is interest? Give the answer both in dollars and as a percentage of the total funds. 2. Simone bought her house for $150,000 in 2000 and sold it for $725,000 in 2020. What are the total and annual returns on this investment?
1. Marcus would like to save up $3 million for his retirement. He has chosen a stock index fund that has an average APR of 7.2%. He plans to draw on the funds at 70 years old which gives him 40 years to save. (a) How much should Marcus save monthly to meet his retirement goal?(b) How much of the future value of $3 million is interest? Give the answer both in dollars and as a percentage of the total funds. 2. Simone bought her house for $150,000 in 2000 and sold it for $725,000 in 2020. What are the total and annual returns on this investment?
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1. Marcus would like to save up $3 million for his retirement. He has chosen a stock index fund that has an average APR of 7.2%. He plans to draw on the funds at 70 years old which gives him 40 years to save. (a) How much should Marcus save monthly to meet his retirement goal?(b) How much of the future value of $3 million is interest? Give the answer both in dollars and as a percentage of the total funds. 2. Simone bought her house for $150,000 in 2000 and sold it for $725,000 in 2020. What are the total and annual returns on this investment?
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