TVOM - this money. How long will it take to meet this goal?...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1. You need to have $1,000,000 for retirement. You have $5,000. You plan on retiring in 35 years. Assuming that you do not want to make any additional contributions, what interest rate would you need to achieve your goals? Answer: 16.34% Payments per year: 1 N = 35 I/Y = ? PV = (5,000) PMT = 0 FV = 1,000,000 2. You have $1000. You need to have $5,000. You anticipate you can earn 10% on
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: this money. How long will it take to meet this goal? Answer: 16.89 Years Payments per year: 1 N = ? I/Y = 10 PV = (1,000) PMT = 0 FV = 5,000 3. You have $50,000. You think you can earn 10% on these funds. How much would this be worth in 25 years? Answer: $541,735 Payments per year: 1 N = 25 I/Y = 10 PV = 50,000 PMT = 0 FV = ?...
View Full Document

Ask a homework question - tutors are online