The S&P 500 (Standard & Poor's 500) was established in 1926 and is an index of...

 

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The S&P 500 (Standard & Poor's 500) was established in 1926 and is an index of funds consisting of the 500 largest and most stable stocks on the New York Stock Exchange. Between 1926 and 2011 the average annual growth of the S&P 500 was 11.69%. Suppose one wants to have $2,000,000 for retirement in 40 years from making payments twice a month (each pay period). If the account earns the equivalent of 11.69% APR compounded semimonthly (24 times per year), a) How much would needs to be deposited in the account each pay period? b) How much total money will be put into the account? c) How much is the net profit? The S&P 500 (Standard & Poor's 500) was established in 1926 and is an index of funds consisting of the 500 largest and most stable stocks on the New York Stock Exchange. Between 1926 and 2011 the average annual growth of the S&P 500 was 11.69%. Suppose one wants to have $2,000,000 for retirement in 40 years from making payments twice a month (each pay period). If the account earns the equivalent of 11.69% APR compounded semimonthly (24 times per year), a) How much would needs to be deposited in the account each pay period? b) How much total money will be put into the account? c) How much is the net profit?