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You are saving for retirement. To live comfortably, you decide you will need to save $ 1,800,000 by the time you are 65. Today is your 30th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 12 %, how much must you set aside each year to make sure that you will have $1,800,000 in the account on your 65th birthday ?

You are saving for retirement. To live comfortably, you decide you will need to save $ 1,800,000 by the time you are 65. Today is your 30th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 12 %, how much must you set aside each year to make sure that you will have $1,800,000 in the account on your 65th birthday ?

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
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You are saving for retirement. To live comfortably, you decide you will need to save $ 1,800,000 by the time you are 65. Today is your 30th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 12 %, how much must you set aside each year to make sure that you will have $1,800,000 in the account on your 65th birthday ?
Transcribed Image Text:You are saving for retirement. To live comfortably, you decide you will need to save $ 1,800,000 by the time you are 65. Today is your 30th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 12 %, how much must you set aside each year to make sure that you will have $1,800,000 in the account on your 65th birthday ?
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