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Mike wants to have $3,000,000 in his 401(K) when he retires in 30 years. If he...

Mike wants to have $3,000,000 in his 401(K) when he retires in 30 years. If he expects his 401(K) can earn 4.23% annual interest, about how much must Mike invest each year to reach his retirement goal?

$63,419

$60,046

$51,468

$48,524
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Answer #1

Answer: $51,468

Future value=$3000000
Time period=30 years
Interest rate=4.23%
Present value=$0

X 1 Future value 2 Time period 3000000 30 3 Present value 0 4.23% 4 Interest rate Investment each year ($51,467.59) 5 6 Formu
Hence, the investment each year is $51,467.59 or $51,468 (Rounded to the nearest whole number)

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