You want to have $2.65 million when you retire in 36 years. You feel that you...

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You want to have $2.65 million when you retire in 36 years. You feel that you...

You want to have $2.65 million when you retire in 36 years. You feel that you can save $550 per month until you retire. What APR do you have to earn in order to achieve your goal?

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Answer 1

Answer #1

Ans 10.51%

Future Value of Annuity =	P ( (1 + r)ⁿ - 1 ) / r
2650000 =	550* ((1 + r%/12)^432 - 1) / (r%/12)
2650000 / 550 =	((1 + r%/12)^432 - 1) / (r%/12)
4818.18181818182 =	((1 + r%/12)^432 - 1) / (r%/12)
r =	10.51%

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Answer 2

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