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Mike is currently 35 years old and plans on retiring at the age of 65 ideally...

Mike is currently 35 years old and plans on retiring at the age of 65 ideally Mike would like to retire with one million dollars.

a. How much would Mike have to deposit on an annual basis to reach his goal if he can get return of 12% compounded annually.?

b. How much would mike deposit on a monthly basis to reach his goal if he can get a return of 10% compounded monthly?

c. If mike can find an annual return of 8% compounded on a monthly basis and can only deposit $400 every month how much will he have once he retires?

d. If Mike was quoted an APR of 11% what is his effective annual rate with daily compounding?

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ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE. THUMBS UP PLEASE.

jeff jeffy answered 1 year ago
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