- Jake is 40 years old and is planning to retire in twenty-five years. He currently has $250,000 saved in his retirement account and plans on adding $15,000 per year to this account until he retires. With an expected return of 6%, how much will Jake have saved in his retirement account when he retires?
- Jake's brother Mark is not that fortunate. Mark has not saved for retirement, and feels he will need $750,000 in retirement savings to like a comfortable retirement. With an expected return of 6% on his investments, how much will Mark need to save each year to reach his goal of $750,000.
Using Equation Method Jake have saved in his retirement account when he retires = Initial Deposit*(1+r)^n + Annual... View the full answer