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5. Loretta is 30 years old and has wanted to be a millionaire by the time she is 50. Her investments usually provide an annual rate of return of 12%. a) If she makes an initial investment of $25,000, how much of a regular monthly payment should she make so that after 20 years she will accumulate $1,000,000? b) If she makes no initial investment, how much of a regular monthly payment should she make so that after 20 years she will accumulate $1,000,000? c) If she makes an initial investment of $25,000, how much of a regular monthly payment should she make so that after 30 years she will accumulate $1,000,000?

5. Loretta is 30 years old and has wanted to be a millionaire by the time she is 50. Her investments usually provide an annual rate of return of 12%. a) If she makes an initial investment of $25,000, how much of a regular monthly payment should she make so that after 20 years she will accumulate $1,000,000? b) If she makes no initial investment, how much of a regular monthly payment should she make so that after 20 years she will accumulate $1,000,000? c) If she makes an initial investment of $25,000, how much of a regular monthly payment should she make so that after 30 years she will accumulate $1,000,000?

Essentials Of Investments
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
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5. Loretta is 30 years old and has wanted to be a millionaire by the time she is 50. Her investments usually provide an annual rate of return of 12%. a) If she makes an initial investment of $25,000, how much of a regular monthly payment should she make so that after 20 years she will accumulate $1,000,000? b) If she makes no initial investment, how much of a regular monthly payment should she make so that after 20 years she will accumulate $1,000,000? c) If she makes an initial investment of $25,000, how much of a regular monthly payment should she make so that after 30 years she will accumulate $1,000,000?
Transcribed Image Text:5. Loretta is 30 years old and has wanted to be a millionaire by the time she is 50. Her investments usually provide an annual rate of return of 12%. a) If she makes an initial investment of $25,000, how much of a regular monthly payment should she make so that after 20 years she will accumulate $1,000,000? b) If she makes no initial investment, how much of a regular monthly payment should she make so that after 20 years she will accumulate $1,000,000? c) If she makes an initial investment of $25,000, how much of a regular monthly payment should she make so that after 30 years she will accumulate $1,000,000?
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