If you begin investing at age 25 instead of age 20, how much more do you need to invest per month to have $1M at retirement? 2. If you begin investing at age 45 instead of age 40, how much more do you need to invest per month to have $1M at retirement? Why is this amount so much greater than the difference between 20 and 25? 3. If you wait until you’re 45 to begin investing, how much money will you need to invest, just for retirement, per year? Why might this be difficult?
If you begin investing at age 25 instead of age 20, how much more do you need to invest per month to have $1M at retirement? 2. If you begin investing at age 45 instead of age 40, how much more do you need to invest per month to have $1M at retirement? Why is this amount so much greater than the difference between 20 and 25? 3. If you wait until you’re 45 to begin investing, how much money will you need to invest, just for retirement, per year? Why might this be difficult?
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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1. If you begin investing at age 25 instead of age 20, how much more do you need to invest per month to have $1M at retirement?
2. If you begin investing at age 45 instead of age 40, how much more do you need to invest per month to have $1M at retirement? Why is this amount so much greater than the difference between 20 and 25?
3. If you wait until you’re 45 to begin investing, how much money will you need to invest, just for retirement, per year? Why might this be difficult?
4. Using the data in graphs II and III, how much will most millennials need to begin investing, per month, in order to have $1M in retirement? Please, explain.
Transcribed Image Text:HOW MUCH YOU NEED TO SAVE PER MONTH TO HAVE
1 MILLION AT RETIREMENT (6% RETURN RATE )
$16000
$14,261
$14000
$12000
$10000
$8000
$6071
$6000
$4000
$3421
$2153
$1435
$990
$2000
$360 $500 $700
20
25
30
35 40
45
50
55
60
AGE WHEN YOU BEGIN SAVING
MONTHLY SAVINGS TO GET TO $1M
TECN
NTES OF AMEMWA
ITED
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VIEWPart (1) Calculation of the difference if you begin investing at age 25 instead of 20 is as follow:
VIEWPart (2) Calculation of the difference if you begin investing at age 45 instead of 40 is as follow:
VIEWPart (3) Calculation of money required to invest at begin of 45 is as follow:
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