You want to retire 35 years from today with $2.5 million in your Individual Retirement Account...

You want to retire 35 years from today with $2.5 million in your Individual Retirement Account (IRA). You currently have 100,000.00 saved in your IRA which is earning 9.00% annually. What amount would you need to save and deposit at the beginning of each quarter to achieve your retirement goal? Note that you are making the deposits quarterly, not annually.

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Expert Solution

Assuming rate of 9% is annual rate compounded quarterly

Quarterly deposits=PMT(9%/4,4*35,100000,-2.5*10^6,1)=251.84

jeff jeffy answered 1 year ago

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