You are just starting your first job out of college. You and your best friend are competing to see who will have more in their savings when you retire; you both

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
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You are just starting your first job out of
college. You and your best friend are
competing to see who will have more in
their savings when you retire; you both
plan to retire at age 52, just 30 years out.
You will need $5 million to retire. If you
average an annual return of 7% on your
investment, how much do you need to
put into retirement savings on an annual
basis?
Transcribed Image Text:You are just starting your first job out of college. You and your best friend are competing to see who will have more in their savings when you retire; you both plan to retire at age 52, just 30 years out. You will need $5 million to retire. If you average an annual return of 7% on your investment, how much do you need to put into retirement savings on an annual basis?
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