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Mathematics, 07.03.2021 05:10 toricepeda82
1. You just got your first “real” job and though you love it, you want to think about retirement. You
have a goal of retiring in in 35 years with $1,000,000 dollars saved by investing. You can assume
you would have an annual return of 7.5% on your investment.
a. How much should you contribute to your investment each month to achieve your goal?
b. Your brother saved the same amount of money each month that you are contributing to your
investment (that is, your answer for part (a)), also for 35 years. However, he doesn’t trust banks or
investment companies so instead he just put the money in a coffee can in his basement. How
much money will he have at the end of 35 years?
c. How much more money will you have compared to your brother?
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Answers: 1
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