Question

You are saving for retirement. To live​ comfortably, you decide you will need to save $ 3 million by the time you are 65. Today is your 31 st ​birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65 th ​birthday, that you will put the same amount into a savings account. If the interest rate is 7 %​, how much must you set aside each year to make sure that you will have $ 3 million in the account on your 65 th ​birthday?

Answer 1

you must set aside $23500 each year to make sure that you will have

$ 3 million in the account on your 65 th ​birthday

Step-by-step explanation: