Ryan wants to retire in 10 years when he turns 65 but has determined he will need $1,000,000 to quit his job and live a lifestyle that is comfortable with him. He currently has $350,000 in his 401K and plans to save $850 per month until his 65th birthday. If his investment can earn an average of 9.75% per year, will he make his goal of $1,000,000? Please show your work and inputs if you use a calculator to solve the problem.

Ryan wants to retire in 10 years when he turns 65 but has determined he will need $1,000,000 to quit his job and live a lifestyle that is comfortable with him. He currently has $350,000 in his 401K and plans to save $850 per month until his 65th birthday. If his investment can earn an average of 9.75% per year, will he make his goal of $1,000,000? Please show your work and inputs if you use a calculator to solve the problem.

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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Similar questions

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Francis wants to start a foundation that will pay its beneficiaries $64,000 per year forever, with the first cash flow occurring one year from today. If the funds will be invested to earn 7% per year, how much must Frank donate today? Enter your answer as a positive number rounded to the nearest penny.
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Joe's starting salary as a mechanical engineer is around $100,000. Joe is planning to place a total of 8% of his salary each year in the mutual fund. Joe expects a 5% salary increase each year for the next 30 years of employment. If the mutual fund will average 9% annual return over the course of his career, what can Joe expect at retirement?

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