Your goal is to retire 30 years from now and have investments worth $2.5 million at thattime. Today, you have $211 in your investment account and plan on adding an additional $10,000 to that account each year. What annual rate of return must you earn on average toachieve your goal?

Calculate the annual rate of return using Excel as follows:Formula sheet:Notes:To understand the…

Answered: Your goal is to retire 30 years from…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

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You believe you will need to have saved $510,000 by the time you retire in 30 years in order to live comfortably. If the interest rate is 7% per year, how much must you save each year to meet your retirement goal?
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Your goal is to retire 30 years from now and have investments worth $2.5 million at that time. Today, you have $211 in your investment account and plan on adding an additional $ 10,000 to that account each year. What annual rate of return must you earn on average to achieve your goal?