You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 11 percent and the inflation rate is 5.5 percent. What real amount must you deposit each year to achieve your goal?
You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 11 percent and the inflation rate is 5.5 percent. What real amount must you deposit each year to achieve 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
Problem 1PS
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Transcribed Image Text:Multiple Choice
O
O
O
$29,017.40
$10,049.20
$30,468.27
$30,178.10
$27,566.53
Transcribed Image Text:You want to have $2 million in real dollars in an account when you retire in 30 years. The
nominal return on your investment is 11 percent and the inflation rate is 5.5 percent. What
real amount must you deposit each year to achieve your goal?
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