Ryan is 30 years old and wants to save $2 million for retirement in 30 years. Assume he invests in a savings account that earns at least the current rate of inflation (7.2%). Determine how much money Ryan must save based on the number of years that he waits to start saving to reach his retirement goal. Years of Waiting to Save Principal Required 0   10   20   30 $2,000,000

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.