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.

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 2 years ago

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