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You are saving for retirement. To live​ comfortably, you decide you will need to save $4...

You are saving for retirement. To live​ comfortably, you decide you will need to save $4 million by the time you are 65. Today is your 22nd ​birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65th ​birthday, that you will put the same amount into a savings account. If the interest rate is 8%​, how much must you set aside each year to make sure that you will have $4 million in the account on your 65th ​birthday?

Solutions

Expert Solution

Sol:

$ 11206 amount should be set aside each year.

NOTE: 1.n = 44 years

jeff jeffy answered 2 years ago
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