n 18 You want to have a million dollars in the bank when you retire. You...

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Answer 1

Answer #1

Let deposit is required for n yrs, then future worth of deposit

F = 5000 * (F/A, 5%,n) + 100 *(F/G, 5%, n)

As per the given condition this is to be equal to 1000000

5000 * (F/A, 5%,n) + 100 *(F/G, 5%, n) = 1000000

Using trail and error method

When n = 35, value of 5000 * (F/A, 5%,n) + 100 *(F/G, 5%, n) = 562242.15

When n = 45, value of 5000 * (F/A, 5%,n) + 100 *(F/G, 5%, n) = 1027901.09

This is just above 1m, as question requires it to solve uptill this step only

So correct answer is option A. 45

Answer 2

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