Question
In: Finance
You begin investing in your retirement and would like to know how many years it will...
You begin investing in your retirement and would like to know
how many years it will take to have 1,000,000 saved in inflation
adjusted dollars. Your retirement savings currently are: $0
Assume all investments grow tax-deferred and at the same overall
rate.
4,000 Invested annually
0.1000 Annual compounded gross rate of return (blended for stocks,
bonds, etc.)
How many FEWER years will it take to save $1,000,000 for retirement
if you adjust the following:
50000 Initial retirement savings/assets (add these to PV but be
careful with signage)
Solutions
Expert Solution
| 1 | Amount required | 1000000 |
| Present savings | 0 | |
| Annual savings | 4000 | |
| rate of return | 10% | |
| Time required | 34.18 | |
| 2 | Amount required | 1000000 |
| Present savings | 50000 | |
| Annual savings | 4000 | |
| rate of return | 10% | |
| Time required | 25.68 | |
| Number of fewer years | 8.51 |
WORKINGS
jeff jeffy answered 3 months agoRelated Solutions
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