Assume your goal in life is to retire with four million dollars. How much would you...
Assume your goal in life is to retire with four million dollars. How much would you need to save at the end of each year if interest rates average 8% and you have a 10-year work life?
A. $ 32,000 B. $ 800,000 C. $ 276,110 D. $ 1,852,774
explain your answer.
Homework Answers
Future value of annuity=Annuity[(1+rate)^time period-1]/rate
4,000,000=Annuity[(1.08)^10-1]/0.08
4,000,000=Annuity*14.48656247
Annuity=4,000,000/14.48656247
=$276,110(Approx).
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