Question: 3. (1 point) Gary will be 30 years old next year and wants to retire when he is 65 years old. So far, he has
3. (1 point) Gary will be 30 years old next year and wants to retire when he is 65 years old. So far, he has saved (1) $6,950 in a brokerage account in which his money is earning 8.3% annually and (2) $5,000 in a money market account in which he is earning 5.25% annually, Gary wants to have $1,000,000 when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund portfolio within an IRA account in which he expects to earn 9% annually. How much will Gary have to invest every year in his IRA account to reach his savings goal? Assume Gary will not deposit any more money in his brokerage account or money market account. You may use a financial calculator. Clearly state your financial calculator inputs for N, I/YR, PV, PMT, and FV
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
