Question: An engineer who believed in save now and play later wanted to retire in 20 years with $1.5 million. At 10% per year interest, to

An engineer who believed in "save now and play later" wanted to retire in 20 years with $1.5 million.
At 10% per year interest, to reach the $1.5 million goal, starting 1 year from now, the engineer must annually invest:
(a) $26,190
(b) $28,190
(c) $49,350
(d) $89,680

Step by Step Solution

★★★★★

3.58 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Given data time duration n20 years future amount F 15 m in... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

217-B-E-M (959).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Louise wants to retire in 20 years with enough savings in her RRSP to be able to purchase a 25-year annuity that will pay her $4000 at the end of every month. She has already accumulated $50,000 in...

Mr. Palmer wants to retire in 20 years and purchase a 25-year annuity that will make end-of-quarter payments. The payment size is to be the amount which, 20 years from now, has the purchasing power...

Mr. Parmar wants to retire in 20 years and purchase a 25-year annuity that will make equal payments at the end of every quarter. The first payment should have the purchasing power of $6000 in todays...

Economics Question 5 Not yet answered Marked out of 3100 An engineer who believed in "save now and play later" wanted to retire in 20 years with $1.5 million At 10% per year interest, to reach the $1...

5. Consider Brads goal to retire in 20 years by saving $4000 per year starting five years from now. a. Based on your analysis of Brads cash flow and your recommendations, is saving $4000 per year a...

4. 2.5 Xavier is an engineer who believes in save now and play later. He wants to retire from full employment in 20 years with $1.5 million. At 10% per year interest, how much does he have to invest...

Xavier is an engineer who believes in "save now and play later." He wants to retire from full employment in 16 years with $2.4 million. At 10% per year interest, how much does he have to invest each...

please solve #6 as soon as possible. with or without gaur , Ur T e d). Understanding Rate of Return (ROR) 1. (10 points) Assume you borrow $50,000 at 10% per year interest and you agree to repay the...

Beyond Meat, a producer of plant-based meat substitutes, was founded by Ethan Brown and Brent Taylor in 2009 in Los Angeles, California. The company's aim was to change the world and try to slow down...

A construction manager wanted to retire in 20 years with GH1.5 million. At 10% per year interest, to reach the GH1.5million goal, starting 1 year from now, the engineer must annually invest what...

What is the difference between C++ and C#?

Mercedes Brown starts a merchandising business on December 1 and enters into three inventory purchases: December 7 10 units @ $ 9 cost December 14 20 units @ $10 cost December 21 15 units @ $12 cost...

Required: a ) Identify and critically examine EIGHT deficiencies in KRAFT Plc internal controls and provide a recommendation to address each of these deficiencies, with citation and references.

Based on the following bank reconciliation, prepare the journalentries: armen Lul Assodates BankPecondliaton rkstatent balane, y Add deposnts in tanst 3 0 0 00 118 00 41 800 Dedact cutsanding hecks...

Comparative Statements of Shareholders' Equity for Locke Inter technology Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018. Required: Infer from the...

Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2009, 2010, and 2011. Required: Infer from the...

The short-run production function for a manufacturer of flash memory drives is shown in the table below. Based on this information, answer the following questions. Input of Labor (workers per week)...

What is tripe?

Refer to Problem 6-38. Which thickness would you recommend if the study period was four years? Use the imputed market value technique to estimate the market value of the 5 cm alternative after j four...

A manufacturing firm is evaluating three automated machines. The estimated production rate and cost data for each machine are given below. The MARR is 15% per year. Annual revenues are based on the...

a. Compare the probable part cost from Machine A and Machine B, assuming that each will make the part to the same specification. Which machine yields the lowest part cost? Assume that the MARR = 10%...

In a survey of 1,100 organizations, 840 responded that "the need for collaboration among an increasing number of locations" is a business driver that led them to implement cloud solutions. Construct...

Math134 F21 Marques Wood Test: Exam(1) Question 13 This Test: 80 pts possible A certain standardized test's math scores have a bell-shaped distribution with a mean of 520 and a standard deviation of...

Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,300 per unit; variable costs = $260 per unit; fixed costs = $4.8 million, quantity = 72,000 units....