Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / How long would it take for you to save an adequate amount for retirement if you deposit $40,000 per year into an account beginning today that pays 12 percent per year if you wish to have a total of $1,000,000 at retirement? PLEASE show how to do it on a Financial calculator
How long would it take for you to save an adequate amount for retirement if you deposit $40,000 per year into an account beginning today that pays 12 percent per year if you wish to have a total of $1,000,000 at retirement? PLEASE show how to do it on a Financial calculator.
A) 12.2 years
B) 10.5 years
C) 14.8 years
D) 11.5 years
Answer:
The time period is computed as follows:
Since the payments are at the beginning, kindly set the calculator in beginning mode.
Plug the below variables as follows:
FV = 1,000,000
PV = 0
PMT = - 40,000
I/Y = 12
Finally press CPT and then N. It will give n equal to 11.5 years Approximately
