Homework Help is Here – Start Your Trial Now!
Business
Finance
John will need to make an initial deposit of $ to reach his goal of 1 million

John will need to make an initial deposit of $ to reach his goal of 1 million

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
Problem 1PS
See similar textbooks
icon
Related questions
Question
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 5% Interest compounded quarterly and he will be making quarterly deposits of $250 Into the account. John will need to make an initial deposit of $ Time Value of Money Solver Enter the given values. N: = 0 Number of Payment Periods 0 1:% = Annual Interest Rate as a Percent PV: = Present Value PMT: = 0 Payment FV: = Future Value 0 0 P/Y: 12 Payments per Year C/Y: 12 V Compounding Periods per Year PMT: = END M 39 Solve Solve Solve Solve Solve to reach his goal of 1 million G &
Transcribed Image Text: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 5% Interest compounded quarterly and he will be making quarterly deposits of $250 Into the account. John will need to make an initial deposit of $ Time Value of Money Solver Enter the given values. N: = 0 Number of Payment Periods 0 1:% = Annual Interest Rate as a Percent PV: = Present Value PMT: = 0 Payment FV: = Future Value 0 0 P/Y: 12 Payments per Year C/Y: 12 V Compounding Periods per Year PMT: = END M 39 Solve Solve Solve Solve Solve to reach his goal of 1 million G &
Expert Solution
Step 1: Introduction

Using a financial calculator, we can determine the amount that needs to be saved today to have $1,000,000 in retirement in 40 years. (65 years -25 years)

You need to solve for PV. 

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS