Dick and Jane have a goal of accumulating $5,000,000 by the time they retire in 40 years. They plan to set aside an equal amount of money at the end of each of the next 40 years. Their investment account is expected to pay 5% compounded annually. How much money must they set aside each year to reach their goal? $125,000 $131,250 $41,391 $17,756
Dick and Jane have a goal of accumulating $5,000,000 by the time they retire in 40 years. They plan to set aside an equal amount of money at the end of each of the next 40 years. Their investment account is expected to pay 5% compounded annually. How much money must they set aside each year to reach their goal? $125,000 $131,250 $41,391 $17,756
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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Dick and Jane have a goal of accumulating $5,000,000 by the time they retire in 40 years. They plan to set aside an equal amount of money at the end of each of the next 40 years. Their investment account is expected to pay 5% compounded annually. How much money must they set aside each year to reach their goal?
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$125,000 |
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$131,250 |
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$41,391 |
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$17,756 |
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