James plans to invest 10 percent of his annual salary after the tax into a retirement...
- James plans to invest 10 percent of his annual salary after the tax into a retirement account at the end of every year for the next 30 years. Suppose that annual return is 4%, and his current after tax salary is 75k which grow 4% per year then:
- Create a spreadsheet which shows James the balance of retirement account for various levels of annual investments and returns. Copy the spredsheet model showing the formulas in your word documents).
- If he aims to gain $1,000,000 at the end of the 30th year, what percentage of his salary he should put in the investment annually.
Homework Answers
Question a
b )to gain $1,000,000 at the end of the 30th year, he need to invest 23% of his annual earnings
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