2) You set up a 45-year investment plan with the intention of amassing 1,500,000 at the end of the 45 years. Assume an average return of 7% per year. a) Set up an IVP that describes the progress of the 45-year investment plan. (You will be putting in a fixed payment each month) b) What should be your monthly payment over the 45-years to ensure your investment plan reaches 1,500,000? c) What should your monthly payment be if you were to start an investment plan reaching the same $1,500,000 over 20 years?
2) You set up a 45-year investment plan with the intention of amassing 1,500,000 at the end of the 45 years. Assume an average return of 7% per year. a) Set up an IVP that describes the progress of the 45-year investment plan. (You will be putting in a fixed payment each month) b) What should be your monthly payment over the 45-years to ensure your investment plan reaches 1,500,000? c) What should your monthly payment be if you were to start an investment plan reaching the same $1,500,000 over 20 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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![Accounting
2) You set up a 45-year investment plan with the intention of amassing
1,500,000 at the end of the 45 years. Assume an average return of 7% per year.
a) Set up an IVP that describes the progress of the 45-year investment plan.
(You will be putting in a fixed payment each month)
b) What should be your monthly payment over the 45-years to ensure your
investment plan reaches 1,500,000?
c) What should your monthly payment be if you were to start an investment
plan reaching the same $1,500,000 over 20 years?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9045065-c017-49c9-b06b-734bd2249f98%2F963aab08-745a-438a-a3c0-1ee60f4d61a4%2Fa56f4wn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Accounting
2) You set up a 45-year investment plan with the intention of amassing
1,500,000 at the end of the 45 years. Assume an average return of 7% per year.
a) Set up an IVP that describes the progress of the 45-year investment plan.
(You will be putting in a fixed payment each month)
b) What should be your monthly payment over the 45-years to ensure your
investment plan reaches 1,500,000?
c) What should your monthly payment be if you were to start an investment
plan reaching the same $1,500,000 over 20 years?
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