You are 20 years old and plan to retire with $1,000,000. You have $30,000 availa
ID: 2717792 • Letter: Y
Question
You are 20 years old and plan to retire with $1,000,000. You have $30,000 available for investment now. You deposit this into an account that pays 10% interest compounded annually? How old will you be when the account has the target amount?
Please show full workYou are 20 years old and plan to retire with $1,000,000. You have $30,000 available for investment now. You deposit this into an account that pays 10% interest compounded annually? How old will you be when the account has the target amount?
Explanation / Answer
Amount now 30,000.00 Amount desired 1,000,000.00 Interest rate 10% Time Opening Balance Interest Closing Balance 1.00 30,000.00 3,000.00 33,000.00 2.00 33,000.00 3,300.00 36,300.00 3.00 36,300.00 3,630.00 39,930.00 4.00 39,930.00 3,993.00 43,923.00 5.00 43,923.00 4,392.30 48,315.30 6.00 48,315.30 4,831.53 53,146.83 7.00 53,146.83 5,314.68 58,461.51 8.00 58,461.51 5,846.15 64,307.66 9.00 64,307.66 6,430.77 70,738.43 10.00 70,738.43 7,073.84 77,812.27 11.00 77,812.27 7,781.23 85,593.50 12.00 85,593.50 8,559.35 94,152.85 13.00 94,152.85 9,415.29 103,568.14 14.00 103,568.14 10,356.81 113,924.95 15.00 113,924.95 11,392.50 125,317.45 16.00 125,317.45 12,531.74 137,849.19 17.00 137,849.19 13,784.92 151,634.11 18.00 151,634.11 15,163.41 166,797.52 19.00 166,797.52 16,679.75 183,477.27 20.00 183,477.27 18,347.73 201,825.00 21.00 201,825.00 20,182.50 222,007.50 22.00 222,007.50 22,200.75 244,208.25 23.00 244,208.25 24,420.82 268,629.07 24.00 268,629.07 26,862.91 295,491.98 25.00 295,491.98 29,549.20 325,041.18 26.00 325,041.18 32,504.12 357,545.30 27.00 357,545.30 35,754.53 393,299.83 28.00 393,299.83 39,329.98 432,629.81 29.00 432,629.81 43,262.98 475,892.79 30.00 475,892.79 47,589.28 523,482.07 31.00 523,482.07 52,348.21 575,830.27 32.00 575,830.27 57,583.03 633,413.30 33.00 633,413.30 63,341.33 696,754.63 34.00 696,754.63 69,675.46 766,430.10 35.00 766,430.10 76,643.01 843,073.11 36.00 843,073.11 84,307.31 927,380.42 37.00 927,380.42 92,738.04 1,020,118.46 Amount Intt required in 37 Year would be 1,000,000 - 927,380.42 72,619.58 Time = 36 + 72619.58/92,738.04 36.78 Years He is now 20 Years Old He would be 56.78 Years or 57 Years when he will have 1000,000
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