You want to have $2.7 million when you retire in 37 years. You feel that you can save $600 per month until you retire. What APR do you have to earn in order to achieve your goal? A. 10.52% B. 11.28% C. 9.11% D. 9.87% E.10.97%

funnyantyLEy

funnyantyLEy

Answered question

2022-11-29

You want to have $2.7 million when you retire in 37 years. You feel that you can save $600 per month until you retire. What APR do you have to earn in order to achieve your goal?
A. 10.52%
B. 11.28%
C. 9.11%
D. 9.87%
E.10.97%

Answer & Explanation

MarinoneTS2

MarinoneTS2

Beginner2022-11-30Added 5 answers

Answer:
Future Value $2,700,000 (I want to have value after 37 Years)
Retirement will be after 37 Years.
Amount we can save is $600 per month which comes to $7,200 per Year ( $ 600 12)
Total amount I can save is $266,400 which comes from ( $ 7 , 200  Yearly saving  37  Years)
So interest rate required to earn $2.7 million
= Total amount that iam going to invest during 37  Years  /  Future Value  100
= $ 266 , 400 / $ 2 , 700 , 000 100
= 0.09866 100
= 9.87%
So required APR will be 9.87% to achieve my goal

Do you have a similar question?

Recalculate according to your conditions!

Ask your question.
Get an expert answer.

Let our experts help you. Answer in as fast as 15 minutes.

Didn't find what you were looking for?