You want to be a millionaire when you retire in 40 years. How much do you have t

Question

You want to be a millionaire when you retire in 40 years. How much do you have to save each month if you can earn an annual return of 11.6 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Savings per month $ How much do you have to save each month if you wait 10 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Savings per month $ How much do you have to save each month if you wait 20 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Savings per month $

Explanation / Answer

Use financial cal

1) FV=1000000

1/Y=11.6/12=0.9667 per month return

n=40*12=480 month

PV=0

CLICK CPT

PRESS PMT=96.40 PER MONTH

2) AFTER 10 YEARS

FV=1000000

1/Y=11.6/12=0.9667 per month return

n=30*12=360 month

PV=0

CLICK CPT

PRESS PMT=312.59 PER MONTH

2) AFTER 20 YEARS

FV=1000000

1/Y=11.6/12=0.9667 per month return

n=20*12=240 month

PV=0

CLICK CPT

PRESS PMT=1066.56 PER MONTH

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