You would like to have $800,000 in your retirement account in 40 years. You assume your retirement account will get a 6% rate of return, compounded monthly. How much money will you need to put in the account each month?

You would like to have $800,000 in your retirement account in 40 years. You assume your retirement account will get a 6% rate of return, compounded monthly. How much money will you need to put in the account each month?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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