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 2 weeks ago

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