You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an APR of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much do you have to save each month if you wait 10 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How much do you have to save each month if you wait 20 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an APR of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much do you have to save each month if you wait 10 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How much do you have to save each month if you wait 20 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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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Question

You want to be a millionaire when you retire in 40 years.
a. How much do you have to save each month if you can earn an APR of 12 percent? (Do
not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.)
b. How much do you have to save each month if you wait 10 years before you begin
your deposits? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
c. How much do you have to save each month if you wait 20 years before you begin
your deposits? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
a. Savings per month starting today
b. Savings per month starting in 10 years
c. Savings per month starting in 20 years
$
14,877.20
42,386.55
128,309.79

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Step 1: Define future value of annuity

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