Jackie is 34 years old. She would like to have $850,000 in her retirement account when she is 65 years old. Show work and write your answer in a complete sentence. a. How much would she need to deposit every month into an account with a 7.25% interest rate? b. If she had started the account at the age of 21 with the same interest rate, how much would she need to deposit every month to achieve her goal? c. How much would she need to deposit as a lump sum (principal) at age 21 with the same interest rate (without making another payment) to have a million dollars at age 65
Jackie is 34 years old. She would like to have $850,000 in her retirement account when she is 65 years old. Show work and write your answer in a complete sentence. a. How much would she need to deposit every month into an account with a 7.25% interest rate? b. If she had started the account at the age of 21 with the same interest rate, how much would she need to deposit every month to achieve her goal? c. How much would she need to deposit as a lump sum (principal) at age 21 with the same interest rate (without making another payment) to have a million dollars at age 65
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 10P
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Jackie is 34 years old. She would like to have $850,000 in her retirement account when she
is 65 years old. Show work and write your answer in a complete sentence.
a. How much would she need to deposit every month into an account with a 7.25% interest rate?
b. If she had started the account at the age of 21 with the same interest rate, how much would
she need to deposit every month to achieve her goal?
c. How much would she need to deposit as a lump sum (principal) at age 21 with the same
interest rate (without making another payment) to have a million dollars at age 65
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