You want to have $5 million when you retire in 40 years. You believe you can earn 9 percent per year on your investment. How much must you invest each year to achieve your goal when you retire? (Ignore all taxes.) Multiple Choice O $10,412 $11,619 $14,798 $15,295 None of these choices are correct

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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**Investment Scenario for Retirement Planning**

**Question:**  
You want to have $5 million when you retire in 40 years. You believe you can earn 9 percent per year on your investment. How much must you invest each year to achieve your goal when you retire? (Ignore all taxes.)

**Multiple Choice Options:**

- $10,412
- $11,619
- $14,798
- $15,295
- None of these choices are correct

---

In this problem, you're tasked with determining the annual investment required to reach a financial goal of $5 million in 40 years, assuming a 9% annual return. This involves understanding concepts such as compound interest and annuity calculations to derive the correct investment amount.
Transcribed Image Text:**Investment Scenario for Retirement Planning** **Question:** You want to have $5 million when you retire in 40 years. You believe you can earn 9 percent per year on your investment. How much must you invest each year to achieve your goal when you retire? (Ignore all taxes.) **Multiple Choice Options:** - $10,412 - $11,619 - $14,798 - $15,295 - None of these choices are correct --- In this problem, you're tasked with determining the annual investment required to reach a financial goal of $5 million in 40 years, assuming a 9% annual return. This involves understanding concepts such as compound interest and annuity calculations to derive the correct investment amount.
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