To live comfortably in retirement, you decide you will need to save $2 million by the time you are 65 (you are 30 years old today). You will start a new retirement savings account today and contribute the same amount of money on every birthday up to and including your 65th birthday. Using TVM principles, how much must you set aside each year to make sure that you hit your target goal if the interest rate is 5%

$22,143

Explanation:

Given data:

Interest rate = 5%

Savings before 65 = $2,000,000

Current age = 30 years.

1) $2 milliion in the question is the future value of the annuity (the equal amount of money to be contributed every birthday) compounded at 5%.

Therefore,

2000000 = A(1.05^35 - 1)/0.05

= A*90.3203074

A = 22,143.41

= $22,143. (amount to be set aside each year)

answer; i believe the correct answer is radioactive decay);

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know