3. You would like to have $2,500,000 when you retire in 45 years. You open an account which has an APR of 3.5% compounded monthly and deposit the same amount each month. You make no withdrawals. How much is your monthly contribution? (3.1) (3.2) Work: Work: Work: Answer: At the end of 45 years, how much have you contributed in total? Answer: At the end of 45 years, what percentage of the money in the account is from interest? Answer: (3.4) How much money would you need to deposit now into an account that has an APR of 3.5% compounded monthly so that you have $2,500,000 in 45 years? Assume you make no additional deposits. Work:
3. You would like to have $2,500,000 when you retire in 45 years. You open an account which has an APR of 3.5% compounded monthly and deposit the same amount each month. You make no withdrawals. How much is your monthly contribution? (3.1) (3.2) Work: Work: Work: Answer: At the end of 45 years, how much have you contributed in total? Answer: At the end of 45 years, what percentage of the money in the account is from interest? Answer: (3.4) How much money would you need to deposit now into an account that has an APR of 3.5% compounded monthly so that you have $2,500,000 in 45 years? Assume you make no additional deposits. Work:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3. You would like to have $2,500,000 when you retire in 45 years. You open an account which has an APR
of 3.5% compounded monthly and deposit the same amount each month. You make no withdrawals.
How much is your monthly contribution?
(3.1)
(3.2)
Work:
Work:
Work:
Answer:
At the end of 45 years, how much have you contributed in total?
Answer:
At the end of 45 years, what percentage of the money in the account is from interest?
Answer:
(3.4)
How much money would you need to deposit now into an account that has an APR
of 3.5% compounded monthly so that you have $2,500,000 in 45 years? Assume you make no
additional deposits.
Work:
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