You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 11 percent and the inflation rate is 5.5 percent. What real amount must you deposit each year to achieve your goal?

You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal return on your investment is 11 percent and the inflation rate is 5.5 percent. What real amount must you deposit each year to achieve your goal?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Please help thanks good bless

Multiple Choice
O
O
O
$29,017.40
$10,049.20
$30,468.27
$30,178.10
$27,566.53

You want to have $2 million in real dollars in an account when you retire in 30 years. The
nominal return on your investment is 11 percent and the inflation rate is 5.5 percent. What
real amount must you deposit each year to achieve your goal?

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