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You want to have $10 million dollars when you retire in 45 years.  How much do you...

  1. You want to have $10 million dollars when you retire in 45 years.  How much do you have to invest each month if you can earn 13% annual return (compounded monthly) on your investment?
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Answer #1

Rate = 13% / 12 = 1.083%

Number of periods = 45 * 12 = 540

Future value = Monthly payment * [(1 + r)n - 1] / r

10,000,000 = Monthly payment * [(1 + 0.01083)540 - 1] / 0.01083

10,000,000 = Monthly payment * 30,921.66459

Monthly payment = $323

You can also find this using a financial calculator:

FV 10,000,000

I/Y 1.083

N 540,

CPT PMT

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