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You want to retire with $370 000 in the bank and you are able to earn...

You want to retire with $370 000 in the bank and you are able to earn 4.84% compounded quarterly for the next 25 years. You currently have $175 000 saved up. How much more do you have to invest in 15 years in order to achieve your goal?

A) $100 649.58

B) $110 649.58

C) $120 649.58

D) $130 649.58

E) $0.00

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Answer #1

Rate per quarter = 4.84%/4 = 1.21%
Number of Periods = 4*25 = 100
The FV of 175000 = 175000*(1+1.21%)^100 = 582,613.4877

Since FV of saved amount is greater than 370,000 hence amount required is 0.

Option E.

Please Discuss in case of Doubt

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