You are saving for retirement. To live​ comfortably, you decide you will need to save $4 million by the time you are 65. Today is your 22nd ​birthday, and you​ decide, starting today and continuing on every birthday up to and including your 65th ​birthday, that you will put the same amount into a savings account. If the interest rate is 6%​, how much must you set aside each year to make sure that you will have $4 million in the account on your 65th ​birthday? The amount to deposit each year is ​$_________________   ​(Round to the nearest​ dollar.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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You are saving for retirement. To live​ comfortably, you decide you will need to save
$4
million by the time you are
65.
Today is your
22nd
​birthday, and you​ decide, starting today and continuing on every birthday up to and including your
65th
​birthday, that you will put the same amount into a savings account. If the interest rate is
6%​,
how much must you set aside each year to make sure that you will have
$4
million in the account on your
65th
​birthday?
The amount to deposit each year is
​$_________________
  ​(Round to the nearest​ dollar.)
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