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Next, let's assume Denise is now thirty-five years old and thus has thirty years for saving toward her one-million-dollar goal. She anticipates an APR of 9.5% on her investments. d. How much does she need to save each year to become a millionaire by age sixty-five if she puts money away annually? e. How much does she need to save if she puts money away monthly? f. Why does it take more per month when she is putting money away at 9.5% than when she was earning a lower rate of 6.5% over the 43 years?

Next, let's assume Denise is now thirty-five years old and thus has thirty years for saving toward her one-million-dollar goal. She anticipates an APR of 9.5% on her investments. d. How much does she need to save each year to become a millionaire by age sixty-five if she puts money away annually? e. How much does she need to save if she puts money away monthly? f. Why does it take more per month when she is putting money away at 9.5% than when she was earning a lower rate of 6.5% over the 43 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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Next, let's assume Denise is now thirty-five years old and thus has thirty years for saving toward her one-million-dollar goal. She anticipates an APR of 9.5% on her investments. d. How much does she need to save each year to become a millionaire by age sixty-five if she puts money away annually? e. How much does she need to save if she puts money away monthly? f. Why does it take more per month when she is putting money away at 9.5% than when she was earning a lower rate of 6.5% over the 43 years?
Transcribed Image Text:Next, let's assume Denise is now thirty-five years old and thus has thirty years for saving toward her one-million-dollar goal. She anticipates an APR of 9.5% on her investments. d. How much does she need to save each year to become a millionaire by age sixty-five if she puts money away annually? e. How much does she need to save if she puts money away monthly? f. Why does it take more per month when she is putting money away at 9.5% than when she was earning a lower rate of 6.5% over the 43 years?
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