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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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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