Final answer:
To become a millionaire when you retire in 44 years, you can calculate how much you need to invest today using the formula for compound interest. If you can earn an annual return of 11.26 percent or 5.63 percent, you can plug in the values and solve for the present value.
Step-by-step explanation:
To calculate how much you need to invest today to become a millionaire when you retire in 44 years, you can use the formula for compound interest.
a. If you can earn an annual return of 11.26 percent, you can use the formula A = P(1+r)^n, where A is the future value, P is the present value, r is the annual interest rate as a decimal, and n is the number of years. Plugging in the values, we get A = P(1+0.1126)^44. Setting A = $1,000,000, we can solve for P.
b. Similarly, if you can earn an annual return of 5.63 percent, you can use the same formula A = P(1+r)^n and solve for P.