J
Jesica
Guest
Your goal is to save $2 million by the time you retire at age 65. Assume that you are exactly 25yrs old have no savings.
However, you plan on making the first contribution towards your retirement account today then at age 30, 35 and 40. Given that your earning power will increase over time the amount that you contribute at age 30 will be double what you contribute today, the amount at age 35 will be three times what you contribute today, and the amount at age 40 will be four times what you contribute today.
If the rate of return on your investment is 10% compounded annually.
(a) What is the minimum amount you need to contribute today to achieve your goal?
(b) assuing your answer to part (a) was $10,000 how much money would you have at age 65 if your investments returned a return of 13.14% compounded quarterly.
(c) If you made equal contributions at ages 25, 30, 35 and 40, instead of the increasing contrictions as stated in the the question. the the question. How much would
each contribution be to reach your goal at 65?
I need only serious answer. I ve exam coming soon, need help. I tried to solve myself but there is something wrong.
I will give full rating, if anyone give me right answer with good explanation.
However, you plan on making the first contribution towards your retirement account today then at age 30, 35 and 40. Given that your earning power will increase over time the amount that you contribute at age 30 will be double what you contribute today, the amount at age 35 will be three times what you contribute today, and the amount at age 40 will be four times what you contribute today.
If the rate of return on your investment is 10% compounded annually.
(a) What is the minimum amount you need to contribute today to achieve your goal?
(b) assuing your answer to part (a) was $10,000 how much money would you have at age 65 if your investments returned a return of 13.14% compounded quarterly.
(c) If you made equal contributions at ages 25, 30, 35 and 40, instead of the increasing contrictions as stated in the the question. the the question. How much would
each contribution be to reach your goal at 65?
I need only serious answer. I ve exam coming soon, need help. I tried to solve myself but there is something wrong.
I will give full rating, if anyone give me right answer with good explanation.