You start working at age 23 and you plan to deposit $5,100 in a savings account every year (end of year) for the next 42 years after which you immediately retire. a. At the end of this time, how much money will you have if the interest rate is 9%? b. You decide that's not enough money. How much will you have to save every year, assuming the same interest rate, if you wish to have $4,500,000 when you retire?

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 start working at age 23 and you plan to
deposit $5,100 in a savings account every
year (end of year) for the next 42 years after
which you immediately retire.
a. At the end of this time, how much money
will you have if the interest rate is 9%?
b. You decide that's not enough money.
How much will you have to save every year,
assuming the same interest rate, if you wish
to have $4,500,000 when you retire?
Transcribed Image Text:You start working at age 23 and you plan to deposit $5,100 in a savings account every year (end of year) for the next 42 years after which you immediately retire. a. At the end of this time, how much money will you have if the interest rate is 9%? b. You decide that's not enough money. How much will you have to save every year, assuming the same interest rate, if you wish to have $4,500,000 when you retire?
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