4. At age 35 you start saving for retirement. Your investment plan pays 6% APR compounded...

4. At age 35 you start saving for retirement. Your investment plan pays 6% APR compounded monthly and you want to have $2,000,000 when you retire at age 65.
        a) How much do you need to save each month?
        b) Suppose you had started saving when you were 30 years old. How much would you need to save each month?
        c) Suppose you had started saving when you were 25 years old. How much would you need to save each month?
        d) Were you surprised by the answers in parts a - c? Discuss the effect of time on the growth of money.

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Expert Solution

Thanks?

Colby Messinger answered 11 months ago

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