Question

In: Finance

Suppose you plan to retire in 33 years. Today, your retirement has a balance of 500,000....

Suppose you plan to retire in 33 years. Today, your retirement has a balance of 500,000. If you can earn 3% per year in your retirement account, how much more do you need to deposit now so that you can have 2.9 million when you retire?

1. 694,761.60

2. 1,593,376.12

3. 1,093,376.12

4. 593,376.12

Solutions

Expert Solution

$2,900,000 = PV * (1 + 3%)33

$2,900,000 = PV * 2.6523352

PV = $1,093,376.12

Amount required today = $1,093,376.12 - $500,000 = $593,376.12

jeff jeffy answered 2 years ago
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