Let’s assume you want to retire with $1,000,000 in your investment portfolio. Given that your investment...
Let’s assume you want to retire with $1,000,000 in your investment portfolio. Given that your investment timeline is 35 years, the return on investment is going to average 8% and you plan to contribute a fixed amount every year for 35 years. What will be this amount? (5 PTS)
Homework Answers
Future value of annuity=Annuity[(1+rate)^time period-1]/rate
1,000,000=Annuity[(1.08)^35-1]/0.08
1,000,000=Annuity*172.3168037
Annuity=1,000,000/172.3168037
=$5803.26(Approx).
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