Suppose that you set a goal of accumulating $2 million by the time you retire, and that you know you wil earn an interest rate of 6% on your investments Lfyou started saving 35 years before retirement how mach would you need to save each year to reach your goal? 2. Now suppose you don't take your retirement seriousty, and you wait to start saving until you oniy have 25 years until retirement. in this case, how much would you need to save each year to reach your goal?
Suppose that you set a goal of accumulating $2 million by the time you retire, and that you know you wil earn an interest rate of 6% on your investments Lfyou started saving 35 years before retirement how mach would you need to save each year to reach your goal? 2. Now suppose you don't take your retirement seriousty, and you wait to start saving until you oniy have 25 years until retirement. in this case, how much would you need to save each year to reach your goal?
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
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Transcribed Image Text:Part 4: Retirement Planning
Suppose that you set a goal of accumulating $2 million by the time you retire, and that you know you will earn an interest rate of 6% on your investments
1. If you started saving 35 years before retirement, how much would you need to save each year to reach your goal?
2. Now suppose you don't take your retirement seriousty, and you wait to start saving until you only have 25 years until retirement. in this case, how
much would you need to save each year to reach your goal?
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