Thursday
August 21, 2014

Homework Help: Math

Posted by Sally on Wednesday, February 29, 2012 at 11:25pm.

You want to have 1.5 million in real dollars in an account when you retire in 40 yeras. the nominal return on your investment is 11 percent and the inflation rate is 3.8 percent. What real amount must you deposit each year to achieve your goal?

My answer is this correct:
real interest rate = 6.94%
FV = 1.5 million
N = 40 yrs
pmt = $7,630.72

Real amount each month is $7,630.72

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

business - You want to have $6 million in real dollars in an account when you ...
business - You want to have $6 million in real dollars in an account when you ...
Math - Real Reverse Nominal Returns You purchase 100 shares of stock for $40 a ...
Finance - You are planning to save for retirement over the next 35 years. To do...
FINANCIAL ACCOUNTING - A portfolio manager is managing a $10 million portfolio. ...
math - interest rates/annuity - Plan to save $5000 per year for retirement with ...
Math - Real Versus Nominal Returns. The Costaguanan stock market provided a rate...
Math - Real Versus Nominal Returns. The Costaguanan stock market provided a rate...
Real reverse Nominal Returns - You purchase 100 shares of stock for $40 a share...
math problem - Real Versus Nominal Returns. A foreign stock market provided a ...

Search
Members