You want to have 1 million dollars when you retire at age 60. Your savings account...

 

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You want to have 1 million dollars when you retire at age 60. Your savings account pays a 2% interest rate, compounded monthly. How much money will you have to invest each month to save up 1 million dollars? A. Calculate the regular payments to achieve this goal if you start investing at age 19. Show how you calculated this value. B. Suppose you are going to college at age 19 and thus do not have the extra money to invest at that age. However, when you start investing, instead of using the savings account you invest in an ETF (in the stock market) which returns 6% per year, compounded annually. How much money would you have to invest monthly into the savings account to have 1 million dollars by age 60, if you started at age 22? Show how you calculated the regular payments to achieve this goal: You want to have 1 million dollars when you retire at age 60. Your savings account pays a 2% interest rate, compounded monthly. How much money will you have to invest each month to save up 1 million dollars? A. Calculate the regular payments to achieve this goal if you start investing at age 19. Show how you calculated this value. B. Suppose you are going to college at age 19 and thus do not have the extra money to invest at that age. However, when you start investing, instead of using the savings account you invest in an ETF (in the stock market) which returns 6% per year, compounded annually. How much money would you have to invest monthly into the savings account to have 1 million dollars by age 60, if you started at age 22? Show how you calculated the regular payments to achieve this goal:

Answer rating: 100% (QA)

A In order to have 1 million dollars by age 60 you would need to invest 83333 per month starting at ... View the full answer