John is 25 years old and wants to have 1 million dollars in savings by the time he retires at 65. He plans to open a savings account that pays 4% Interest compounded quarterly and he will be making quarterly deposits of $250 Into the account. John will need to make an initial deposit of s to reach his goal of 1 million
John is 25 years old and wants to have 1 million dollars in savings by the time he retires at 65. He plans to open a savings account that pays 4% Interest compounded quarterly and he will be making quarterly deposits of $250 Into the account. John will need to make an initial deposit of s to reach his goal of 1 million
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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![**Scenario:**
John is 25 years old and wants to have 1 million dollars in savings by the time he retires at 65. He plans to open a savings account that pays 4% interest compounded quarterly and will be making quarterly deposits of $250 into the account.
John will need to make an initial deposit of [calculation needed] to reach his goal of 1 million dollars.
**Time Value of Money Solver:**
Enter the given values.
- **N:** 0 (Number of Payment Periods)
- **I%:** 0 (Annual Interest Rate as a Percent)
- **PV:** 0 (Present Value)
- **PMT:** 0 (Payment)
- **FV:** 0 (Future Value)
- **PY:** 12 (Payments per Year)
The Time Value of Money Solver is a tool used to calculate various financial parameters such as the number of payment periods, interest rate, present value, payment amount, future value, and payment frequency per year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F51edee05-cba8-4019-9a0d-4ee43c921f56%2F5abc8628-849a-4815-87b1-8af6eae2723c%2F2on7y1b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Scenario:**
John is 25 years old and wants to have 1 million dollars in savings by the time he retires at 65. He plans to open a savings account that pays 4% interest compounded quarterly and will be making quarterly deposits of $250 into the account.
John will need to make an initial deposit of [calculation needed] to reach his goal of 1 million dollars.
**Time Value of Money Solver:**
Enter the given values.
- **N:** 0 (Number of Payment Periods)
- **I%:** 0 (Annual Interest Rate as a Percent)
- **PV:** 0 (Present Value)
- **PMT:** 0 (Payment)
- **FV:** 0 (Future Value)
- **PY:** 12 (Payments per Year)
The Time Value of Money Solver is a tool used to calculate various financial parameters such as the number of payment periods, interest rate, present value, payment amount, future value, and payment frequency per year.
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