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Richard Miller is 30 years and wants to retire when he is 65. So far he...

Richard Miller is 30 years and wants to retire when he is 65. So far he has saved (1) $5,600 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,040 in a money market account in which he is earning 5.25 percent annually. Richard wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in which he expects to earn 8.32 percent annually. How much will Richard have to invest every year to achieve his savings goal? (Round answer to 2 decimal places, e.g. 15.25.)

Richard will have to save $

(Please help to answer with detailed working.Thanks.)

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Answer #1

The solution to the given question is provided below for your reference

=(1000000-5600*1.083^35-4040*1.0525^35)/(1.0832^35-1)*0.0832

=4779.30

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