Assume an investor has set a goal for retiring in 25 years with $1,000,000 saved. They...
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Assume an investor has set a goal for retiring in 25 years with $1,000,000 saved. They will contribute $3,000 per year toward this goal. What rate of return must the investor earn in order to achieve this goal? What kind of risk would this investor have to take on in order to earn this return? (high/low) What are three alternatives for this investor if they don't feel comfortable with earning the required return? Assume an investor has set a goal for retiring in 25 years with $1,000,000 saved. They will contribute $3,000 per year toward this goal. What rate of return must the investor earn in order to achieve this goal? What kind of risk would this investor have to take on in order to earn this return? (high/low) What are three alternatives for this investor if they don't feel comfortable with earning the required return?
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To calculate the rate of return required to achieve a future value of 1000000 in 25 years with annua... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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