a.Joe Smith has asked your financial advice. He would like to have $2,000,000 in his investment...

a.Joe Smith has asked your financial advice. He would like to have $2,000,000 in his investment account 25 years from now. He expects a stable 6% return and has $250,000 now. How much does he need to add to his account annually to achieve his goal?

b.Joe Smith has asked your financial advice. He would like to have $2,000,000 in his investment account 25 years from now. He expects a stable 6% return and has $250,000 now. What would he need to add annually if his return was reduced to 5.5%?

c.Joe Smith has asked your financial advice. He would like to have $2,000,000 in his investment account 25 years from now. He expects a stable 6% return. What would he need to add annually if he started with $300,000 now.

Expert Solution

a)

Hence, Annual deposit is $16,896.76

b)

Hence, Annual deposit is $20,461.37

c)

Hence, Annual deposit is $12,985.42

jeff jeffy answered 8 months ago

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